Franchise Buying Tips for Entrepreneurs
Posted on: September 3, 2016 by RMS Hospitality
If your clients have decided to purchase their own franchise, they are not alone. This is a great opportunity for aspiring and existing entrepreneurs to get their share in a successful business model. However, buying a franchise is more than signing a check, and the following tips are listed to help guide your clients in the right direction. Once they have made their decision, ensure their entire operation is protected with a Franchise Select Insurance program.
Do the research.
Start by reading the Franchise Disclosure Document (FDD) to find out important details about the franchise company, litigation and bankruptcy history, as well as your initial fees, investment, and obligations, says Small Business Trends.
Location make or break a franchise. Choose your location wisely. Consider the local shops, schools, and businesses that are located nearby that could drive traffic. Consult with other owners and franchisors to get feedback about choosing the right spot.
Service is king.
The proven success of the business model is evident in a franchise, but it’s up to your clients to provide a positive customer experience each and every time. Customer service is king, so they need to train each and every employee to uphold superior service.
Mind the small things.
For franchisees, a formal business structure (like a corporation or LLC) is critical to separate your personal assets from the business. While the exact business structure you choose will ultimately depend on the specifics of your situation, many franchisees choose to become an LLC or S Corporation for more favorable tax treatment, says the article.
At RMS Hospitality Group, we strive to protect each facet of franchises. For decades we have provided quality insurance solutions, business consulting, and aggressive claims management for your clients. For more information about our comprehensive list of products, we invite you to contact us today at (888) 359-8390.