An organic food store franchise is a fantastic idea because you have the potential to make good money with the right partner. Because they have a long track record, you could benefit from the things they have to offer. You also do not have to struggle with the challenge of creating brand awareness because it already exists.
The right franchisor will also avail specific tools that could help your business. Such include financing and marketing support, technical and logistical advice, among others. However, before signing on, there are specific things to ask, and we will discuss them below.
· What Kind Of Investment Do I Need?
Entering a franchise does not preclude you from the typical financing aspects of setting up a business. You need to have a clear understanding of how much you will need. You will need to factor in things such as buying of your organic foods, inventory. Staffing requirements, location, and working capital, among others. Going in blind could mean that you run out of cash when you need it. If you do not have enough money set aside, discuss your financing options with the franchisor or a lender.
· Do I Need A Business Plan?
Yes, you need a business plan when starting any business; whether selling organic foods or starting a car wash. The business plan will guide all your activities by outlining your goals, timelines, and objectives. You should also note that some lenders will only give you a loan if you have a proper business plan.
· Do I Need To Have The Right Passion And Skill Set?
The craze right now is around organic foods, and there is a lot of business potential. You need to have a passion for the business. You also need to get the relevant skills for running an organic food store franchise. It will require that you do your market research, and fill any knowledge gaps you may have. By understanding what your customers need, you get to position yourself as the solution provider.
· How Much Time Will I Need To Commit To The Business?
Running a franchise is like running any other business. You will need to invest sufficient time to make it a success. Even if you are doing it as a side business, you will still need to dedicate time to running the company. You will need to take on roles such as handling your staff members, checking the inventory, talking to the suppliers, among others. You cannot expect to be successful if you hand over the reins to someone else in totality.
· What Information Do I Need To Know About The Franchisor?
You need to know everything you possibly can about the franchisor. Do your due diligence and look at factors such as:-
- How long have they been in business
- Are they successful? Get financial documents to support their claims on the level of their success. Some companies know how to hide their real financial situation. You may think you are signing on to a successful company only to find out that they are drowning in debt.
- What do the clients say about them – check the customer reviews and testimonials to give you a good indication of whether their professional or not. the organic food industry is a tricky one, and dealing with a company that is not reputable could damage your reputation irreparably
- What do the other franchisees say? Join the relevant networks and carefully listen to what the other franchisees say about the franchisor
Having the right information will not hurt you in any way. It means that you avoid making any rash decisions, by taking enough time to know the company you want to work with.
· What Do I Need To Be Successful In The Franchise Business?
Knowing how to be successful in the franchise business will require that you depend a lot on your networks. Other than having the right organic products, there are many different facets to a business. Understand the challenges that you may need to overcome. Learn from the mistakes of other franchisees. Set in place pre-emptive measures by understanding what could go wrong, among others.
· Will I Get Support From The Franchisor?
Yes, you will get some support from the franchisor, but at the end of the day, the success of the business is squarely on you. Some franchises will give you financing, marketing material, and business advice, among others. Before you sign the contract, ask the franchisor to highlight what kind of support they will give you.
· Do I Need An Exit Strategy?
Yes, you need an exit strategy, and you need to know what it is before you even start your operations. You have several options, including passing the business down to your children. You could, at a future date, sell it, among others. Working with the franchisor who supports your long term objectives can be very beneficial.
· Do I Have Leeway With The Rules And Regulations Of The Franchisor?
It depends on the franchisor you enter a partnership with. Some will give you some leeway in determining how you run your business, while others will not. That is why we insist that you should look at the documents carefully before signing. You should also engage the services of a lawyer to help you negotiate favourable terms.
Setting up an organic food franchise is a fantastic way to move your products. You need the right knowledge which comes from asking the right questions. Use what we have in the article above as a guideline, but try and get as much information as you possibly can. Every business has it’s unique needs, and you must understand what yours are. Only then can you find a franchiser that matches your needs satisfactorily. Good luck with your organic food store franchise business.