A 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.
Starting a car wash business through 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.
So how do you ensure that you’ll be joining a good franchise? That’s where the franchise checklist comes in.
Franchise Checklist: Points to Consider
One of the major things you will be relying on when you get a franchise is its already-established brand. It should be widely recognized or already has a strong brand awareness strategy. 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?
Sound Business Plan
In order to say that a franchisor’s business model works, it has to be proven successful over a certain period of time. It has to have a strong track record of success. This 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.
Established Market Demand
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.
Solid Marketing System
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 franchise or values their inputs and treats them as partners in the business rather than subordinates.
Attractive Earning Projections
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 proof of financial projections and a comprehensive documentation of the performance of other franchises to see the bigger picture.
Training and Support
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.
Fees and Cost Structure
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?
Accredited by Franchising Associations
Does the franchisor comply with existing franchising standards?
Click to get your Franchise Checklist.
If you are ready to put this franchise checklist to a test, why not contact us? We’ll be happy go through the list with you and show how we meet all the requirements on the list.