Q: I have no experience in being an entrepreneur yet, so this would be my first time to apply as a franchisee. In your opinion, is it better for me to invest in a brand with a low franchise fee package (I think it\\\'s because it\\\'s not a very big brand, yet) or one with a slightly higher franchise fee but has many outlets already? Both are in the same product category. I\\\'d be willing to take out a loan to finance the one with the higher franchise fee if you think it\\\'s wiser for me to choose that option. What do you think?
A: The secret in getting a franchise is to primarily FOCUS on the products and services that the franchise offers and not on how low or how high the franchise fee costs. Avoid being restricted by the investment costs when trying to make a decision. Instead, conduct a survey by visiting several branches of both franchises then, make a comparison as to which franchise is better. Furthermore, ask yourself these questions:
- What products and services are often availed by the customers?
- What types of customers do these companies cater to?
Also, remember to pay attention to the personal preferences of your target markets. A customer has to like and be confident about the products and services that the franchise is offering.
Apart from the points already mentioned, go and talk with the franchisees of both companies and find out their levels of satisfaction in terms of the performance of their respective franchise business.
Armando "Butz" O. Bartolome is currently President of GMB Franchise Developers, the pioneer franchise development company in the country and is behind the growth and expansion of over 200 local companies. You may reach him at email@example.com.