Starting a car wash business by joining a franchise is a popular choice for budding entrepreneurs. Buying into a franchise has advantages such as saving time, resources and effort in building the business from scratch. It is like purchasing a ready-made business wrapped in a neat package – the majority of the startup work has been done for you. However, getting a franchise might not be as easy as people might think. Just like any other business venture, entering into a franchise agreement entails risks – risks that can be easily managed if you know the specific details you need to look out for. A franchise checklist will help organize these factors for you and make deciding a little less complicated.
This franchise checklist will come in handy when you do research on the different car wash franchise opportunities available. It serves as a guide whether or not a franchise is a good match for your business goals, skills, and resources.
One of the major things you will be relying on when you get a franchise is its already-established brand. It should be a brand that is already widely recognized or one that has a strong awareness strategy as it grows. Assessing the brand boils down to trust. Will you trust the company with a portion of your earnings? Do you trust the way they make business decisions? Does the company share your values and passion?
In order to say that a franchise’s business model works, it has to be proven successful over a certain period of time. It has to have a strong track record that will make you feel confident in investing time and effort in running the business for the next couple of years. Its business systems should cover all necessary processes such as marketing, communication, and payroll.
The car wash service is your main product and how it will be received by your target market should be one of your topmost concerns. The franchisor should offer car wash systems that will be readily availed by your target market.
Look closely into the franchise’s marketing strategy and decipher whether it is well-designed and adaptive to your target market and proven effective over time. It should come at a price that your budget can accommodate. You may also explore if the franchisor is receptive to marketing ideas from its franchisees.
A good franchisor has a list of its existing franchisees and readily offers it to a potential franchisee for checking. It maintains a good relationship with its franchisees by being attentive to their needs and providing the support they need. Allowing franchisees to organize themselves and negotiate terms with the company is also an indicator that the franchisor values their inputs and treats them as partners in the business rather than subordinates.
Most franchise packages boast of their franchisees’ remarkable sales performance. It is easy to fall for this statistic. Keep in mind that another location’s profit margin may be significantly different from your branch due to a number of factors. Ask for evidence of the earning projections and a comprehensive documentation of the performance of other franchises to see the bigger picture.
The company should be able to provide training to your staff not just at the beginning, but also refresher courses and support during actual operations. Probe and compare the level of support provided in various areas of the business like construction, technology, marketing, etc.
What are the different fees that you need to pay initially and throughout the business lifespan? Are there hidden fees? Will your budget be enough to cover all the expenses?
Does the franchisor comply with existing franchising standards? Do your research not only online but offline too. Ask current and previous franchisees to get a clearer picture of the franchisor’s credibility.
Click the link to download DetailXPerts’ Franchise Checklist.
How about checking the DetailXPerts franchise opportunity? Talk to one of our experts to decide and see if we meet all requirements on the checklist!