Buying a franchise instead of creating a new business from scratch has many advantages. You are buying into a proven business model, so all the kinks have been worked out. New business owners are acquiring a model with a proven system that works, even for entry-level people. This includes a turn-key business (everything you need to get started), marketing, a national brand name, a pricing strategy, training, and on-going corporate support.
If you are doing your research, you will find many recommendations for things you should consider before buying a franchise. These include:
Review your strengths and skill set
Do you have the skills required to run your own business? Customer service, coaching and mentoring, planning, strategizing, managing and directing, accountability and reliability are all common strengths of successful business owners.
Look at your financial situation
How much money (cash) can you afford to invest? Do you have reserves to cover your expenses during your first year as you grow your business?
Read the Franchise Disclosure Document (FDD)
One of the most important sources of information for prospective franchisees is the FDD. All franchisors are required, by the Federal Trade Commission, to provide a copy of their current FDD to every applicant no less than 14 days before the sale of the franchise.
The purpose of the FDD is to provide prospective franchisees with information about the franchisor, the franchise system and the agreements they will need to sign so that they can make an informed decision.
Talk with existing franchisees
Part of the FDD requirement for the franchisor is to provide potential franchisees the names and contact information of current franchisees. Make an appointment to speak with several of them. Ask them questions about their experience as franchisees, working with corporate, the pros and cons of the business.
Attend a Discovery Day
Once you have gone through all the steps listed above, it is time to meet the leadership team of the franchisee you are considering. This provides potential franchisees the opportunity to meet the corporate team, tour the facility and ask questions.
About Totally Nutz®
Since 1990, Totally Nutz® has been freshly roasting cinnamon glazed nuts at local sporting events, community events, and shopping areas. Totally Nutz was founded by Matt and Yvette Barker who were looking for a family-friendly business which would allow them to spend more time with their young children. To date, Totally Nutz Franchise now has over 65 franchises located throughout the United States.
Totally Nutz pairs well with sports, shopping, concerts and other event types where people gather to enjoy family, friends and to have a good time.