Franchise Opportunities Ontario
How to Recognize Quality Franchise Opportunities
A franchise business represents a unique business opportunity. There are a number of potential benefits that come with buying a franchise. However, how do you know which franchises offer the most benefits? What should you be on the lookout for? Which ones are the fastest growing? How do you identify the best franchises for sale?
Opening up an Ontario franchise can be lucrative. Ontario possesses a lot of the economic and demographic fundamentals that are crucial to small business success. There are high employment rates across Ontario, as well as a high concentration of the population, which helps local economies.
Here is a guide to franchise opportunities in Ontario.
Turnkey Business Opportunity
There’s a solid reason that purchasing a franchise has a 95% success rate. That’s because franchises are essentially turnkey operations. Entrepreneurs have the skills, personality, and drive to be successful small business owners. However, many may not yet have the years of experience in the small business trenches to be successful quickly. Buying an established franchise shortens your path to small business profitability.
When you buy a franchise, you are purchasing an established infrastructure. That means you don’t need to spend time doing trial and error to see if a business plan works. The franchise has already done that for you.
You’ll benefit from a brand that’s already well established. Usually, an established customer base comes along with that brand recognition. You also take advantage of their market research and, in many cases, marketing campaigns. Some franchises also offer staff or at least guidance on hiring, training, and staff retention.
It is typically easier to get financing when you buy a franchise than when you strike out on your own with a business from scratch. That’s because the operations and cash flow are already established.
The Fastest Growing Business Opportunity
As your franchise grows, there is often an opportunity to become a multiple franchise owner. That means you’ll be able to build on your success and be more profitable more quickly.
Of course, with any business decision, you need to consider the financial information. You should ask to see a franchise’s financials. You want to align yourself with a brand that is established, will continue to grow and is likely to still be in business for years from now, based on history and a solid strategy to move forward.
With the help of your accountant, examine the annual sales of the franchise and growth targets.
Similarly, you need to understand what the franchise fee is. Are there ongoing royalty payments? What does the ongoing royalty fee cover? Does the franchise offer any assistance with securing financing for franchise purchase?
What is the total cost for the franchise purchase? Does this include things like equipment, inventory, advertising, and anything else?
Like with any business decision, finding the right franchise opportunity should be done with thorough due diligence. Asking the right questions minimizes risk when starting a small business. Here are some questions you should know the answers to:
- Does the franchise own the real estate (i.e. the land or the building) where your possible franchise will be located, if real estate is necessary?
- Is the location favourable to growth (i.e. is there the right kind of consumer traffic)?
- Are there other competitors in the product or service space located nearby?
- What kind of support can you expect from the franchise going forward?
- What is their track record with consumers?
- Is the product or service in demand? Does it fill a need in the marketplace?
How to Find a Franchise for Sale
Start by thinking about your community or the community in Ontario where you want to own a franchise. What sorts of products or services are currently available? Is there a services gap in the marketplace? Are there established brands that you feel would do well in the community, based on market analysis?
Pick the product or service that makes sense. Think outside the box, whether it is delivering a healthy snack or giving consumers more time in their day as you take over cleaning.
Your first steps are to look online for franchise opportunities. Ask real estate agents about opportunities, recommendations, or for advice on the market in key areas. Make a wish list that aligns with your goals, and go from there.
Thinking about buying a franchise? The advantages are substantial. Is today the day that you take that important step towards being your own boss?