You need to be realistic about what you can afford when buying into a franchise and how realistic the results are that the franchisor tells you you will achieve. Make sure you get an opportunity to speak with other people.
The initial investment of a franchise can range from a few thousand pounds upto a million therefore always have a clear budget of what you not only can afford to invest but what you can afford to lose if it all goes wrong.
Family can be the greatest asset and a curse when it comes to owning and running a business and especially a franchise. It’s very common for them to be concerned that you aren’t making the right decision especially when buying into a franchise as all they see is the negatives especially if you have a family to support but the way around this is to make sure that you have done all the research and planning you have to happily know your numbers and make sure that you can support your family, how much do you need each day, week and in the months until you start to make money in your business and can pull out a salary.
One of the things a good franchisor will be able to help you work out ids where is your break even point, this is the point where you become cash flow positive and start to make money in your business, this is usually about month 3-6 unless you are investing in a franchise with a much higher startup cost.
But what if the franchise goes wrong, what if you spend your life savings in a business then have to close for 6 months because of a global pandemic? Hopefully 2020 isn’t something that we will all experience for a long long time however it’s always worth thinking about what would happen if there was a repeat, how would you make money if you couldn’t trade? How would the franchisee support you? or how much savings would you need just in case?