Man in a green shirt thinking about a College HUNKS franchise opportunity
Back to Blog

7 Things to Do Before You Buy a Franchise

July 8, 2021

7 Things to Do Before You Buy a Franchise

One way to avoid the pitfalls of starting a small business from scratch is to buy into a franchise. The track record for success is greater than it is for most small businesses and–with good franchisors–you receive all you need to succeed in the form of materials, systems, training, and support. But, finding the right franchise opportunity can be tricky. Thorough research combined with careful consideration of several factors is the key to doing it the right way. 

Here are 7 things to do before buying a franchise that you will want to keep in mind.

1. Understand How Franchising Works
The first step to take in the process of knowing whether franchising is right for you is to understand how the process works. 

Three sources can give you the complete picture: 

  1. The Federal Trade Commission’s Guide to Buying a Franchise
  2. The International Franchising Association’s Franchising 101 Guide
  3. The American Association of Franchisees and Dealers’ Road Map to Selecting a Franchise

2. Assess Your Strengths and Preferences
By the time you are considering starting your own business, you likely know what type of business activities you prefer and the ones at which you excel. Do you like sales and marketing? Are you talented at financial strategy? Do you prefer to be a hands-on business owner or a silent investor? It’s also important to determine the type of industry and company that captures your interest, fits with your personality, and works with your values.

3. Research Growth Industries and Franchisors in Those Sectors
While certain industries are appealing, you need to feel confident that they are expected to have growth potential. Numerous media websites such as Forbes and CNBC, research organizations such as Statista, and business consultants such as Ernst & Young have made useful studies of this available. The Statistics of US Businesses, which is a government website, also has helpful information regarding growth sectors. For inspiration and to learn what types of available franchises support your interests, have a look at the International Franchise Association’s (IFA) website. 

4. Know What You Can Afford to Invest
Depending on the type of franchise you choose, you will need to pay fees that can be as little as $10,000 or as much as nearly $1 million. You also will need to have enough capital set aside to cover both business expenses for six months and personal living expenses for a year.

5. Research Franchisors and Obtain Proof of Success 
Any franchisor worth considering should have a track record of success in their industry. They should provide you with documents to illustrate this and all of your costs if you buy in, including:

  • Financial performance over time
  • Industry overview
  • Startup costs
  • Financing options
  • Overviews of training, support, and marketing
  • Management team and Founder’s information
  • The brand’s history
  • How the franchise ranks among competitors
  • The Franchise Disclosure Document

You will want to know how long the franchisor has been operating, who its principals are and their backgrounds, and how popular its branded products and services are with consumers. Also, try to speak with some franchisees to find out how their businesses are performing and whether they are receiving good training and ongoing support. You may also find reviews of the franchisors on various websites–both from consumers and its franchisees.

6. Choose a Business Model with Built-In Resiliency and Innovation
When you buy a franchise, you are buying into a business model that not only has a demonstrated track record of success but also is primed for future success. This means that the business plan should have the flexibility to adapt to changing market conditions and consumer preferences. The plan should also include goals for how to continually create new and interesting products and services to both retain and attract customers.

7. Before You Buy, Consult an Attorney
Having an attorney review all of the documents you will be signing to purchase your franchise–and your plan for succeeding with it–will provide peace of mind that your agreements with the franchisor are in your best interest.

If you would like to be part of a franchise success story that is more than a decade long, consider franchising with College HUNKS Hauling Junk & Moving, the leading stress-free junk removal and moving franchisor in the United States. Our business model, which combines junk removal and moving services, has proven recession- and pandemic-proof.

Here’s an overview of some numbers to consider if you are interested in franchising with College HUNKS.

  • We are ranked within the top 3% of all franchise opportunities in the United States
  • We have more than doubled the size of our franchise system since 2010 and experienced 500% systemwide growth since 2013 
  • In 2019, we reached $100 million in revenue
  • The average College HUNKS franchise revenue sales were $1.31 million in 2020
  • In 2020, we added 40 new franchisees to our network despite COVID-19

Contact College HUNKS Hauling Junk & Moving to find out more about how you can start your successful junk removal and moving franchise. We are confident that you will be impressed by our team and our brand, and look forward to sharing why we know College HUNKS is the go-to franchise of choice for those looking to be successful entrepreneurs.