How To Buy A Franchise | Peter Taunton's Tips For First Time Franchisees
How to Buy a Franchise
1. Examine their infrastructure
Whether it’s fitness or fast food, the key to any successful franchise organization is having the proper infrastructure in place to support its franchisees. No matter how hot the concept may be, investing in a franchise that isn’t set up to provide franchisees with the support for long-term success is the wrong way to go.
With Snap Fitness, for example, we grew very quickly in a short amount time. We recognized that we needed to expand our infrastructure in order to support our new franchisees, while still providing the same level attention for our existing owners. Today, we’ve grown our corporate staff to include a complete in-house marketing department with a dedicated creative design team to create unique, year-round marketing campaigns; a team of franchise account representatives assigned to designated franchise owners to provide operational and sales support; on-site regional personal training and sales training courses and much more.
This is crucial when selecting the right franchise for you, as there are plenty of companies that can sell a concept. But a truly successful company won’t just sell a concept; they’ll sell a sustainable, long-term business model.
2. Identifying trends vs. fads
These days, it seems that everyone is always looking for the next “big idea” to take their business to the next level. As an entrepreneur and potential franchise owner, I encourage you to keep an eye on what’s happening in the market place and to explore opportunities that you feel excited and passionate about investing your time and money in to.
However, I urge you to do your due diligence and evaluate the concept before getting too deeply involved. Ask for statistics regarding market growth over the past several years, not just for that specific business but for their industry as a whole.
Using myself as an example once again, fitness is a concept that has grown by leaps and bounds over the past several years, attracting a plethora of new players in the market. I’m sure you remember a few years ago the overwhelming number of workout videos, at-home exercise devices and niche fitness concepts that kept popping up, seemingly overnight. How many of them are still in business? Exactly.
Look for concepts that demonstrate positive growth trends, as opposed to being sold on the “flavor of the month.”
3. Find a concept that motivates you
Above all else, the key to being a successful small business owner is to have a passion for your business and to be motivated to get up and go to work in the morning.
The first rule of building a successful business reads like this: If you don’t believe in your product, neither will your customer.
Think about it like this; if you have a passion for health and wellness, why would you want to open a fast food franchise? Your business is a reflection on you, so make sure that you selling a product or a service that you truly believe in.
At the end of the day, franchising is a great way to achieve freedom, fulfillment and flexibility. Just remember to do your homework first!
www.snapfitness.com/Corporate/franchise-opportunities
Peter Taunton
Founder and Chief Executive Officer
Peter established Snap Fitness in 2003, with a vision to give consumers a fast, convenient and affordable workout alternative to traditional "big box" health clubs and entrepreneurs a practical model to run their own business.
Before founding Snap Fitness, Peter owned and operated five America's Fitness Centers in Minnesota.
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