When you are looking for a franchise to buy, there's a lot of due diligence that needs to be done. One of the things that I would recommend that you look for is current franchisees who are opening up additional locations. When a franchisee is opening up additional units it tells you a couple of things, number one is that there's a very high likelihood that they are either making money with their first location or they feel comfortable with the support and training that they are getting and the trajectory that they are on to continue to expand. Scalability is one of the most important elements of franchise success and opening additional units is a great sign of scalability. Multi-unit owners are really important in franchise systems that don’t have a 10 or 20 year track record. Everyone knows that McDonalds, Taco Bell and Subway have expandable and scalable systems, but if you are buying into a newer franchise system the importance of multi-unit owners is magnified. A lot of this relates back to the issues that I have mentioned previously, namely a proven track record and the support and training that you receive from your franchisor. With everyone looking for a new and exciting franchise opportunity, looking for franchise systems where franchisees are opening up additional units is a great place to begin your search!
Another good question to think about in regards to scalability and the growth of your business is the following: What do people consider a necessity rather than a luxury? Or put another way, if the economy slows down or even goes into a recession, will my franchise business survive? One example of this is how haircuts are something that most people consider a necessity and not an option, and no matter what the economy is doing hair is always growing - and it always needs to be cut! Child care is another one. People will always have a strong desire to have a family. If people spend money on anything in good times or bad, they will ALWAYS spend money on their kids. We can probably all think of companies whose products have either gone out of style or are no longer relevant. The most recent example is Blockbuster entertainment. The video rental store has been replaced by Netflix and other on demand movie services. Another example is Borders. Borders book stores unfortunately didn't keep up with Amazon's online book stores, and recently closed most of its locations as well. Again, it's hard to imagine a time when hair care is no longer a need - no matter what happens with technology.
Lastly, when trying to determine how successful a potential franchise system really is, it's a good idea to contact franchises and talk to the franchisors, look at the Franchise Disclosure documents and the Franchise Agreement, and compare business models. For example, Shear Madness Franchising franchises Shear Madness Haircuts for Kids salons. We have worked with franchise stores in providing franchisee support (in order to encourage continual growth), and have sometimes seen the unexpected happen! When it does, we help by identifying and helping with challenges that might arise for franchisees. Additionally, we work to present options that can help prevent these events as well. As many franchise owners may not have opened a business before, having someone who can advise them is a significant advantages of franchise ownership!
Are you interested in learning how YOU can join the Shear Madness Haircuts for Kids family and run your own successful small business? We are one of the fastest growing kids hair salon franchise systems in the industry today! If you would like to learn more about small business marketing, great marketing strategies, resources for small businesses, how to grow your small business, or how to become a successful owner of your own kids hair salon franchise business, please click below or call 1-888-98 GONE MAD!
