For some franchisees, business is a family affair. If you are approaching franchise ownership as a family, finding an opportunity that is a suitable fit for all requires extra consideration.
Some families may enter a franchise opportunity with experience, while others embark on it as a new experience. However your family is approaching it, there are several factors to consider when searching for an opportunity that will benefit everyone involved.
Family members may want to start by considering how much time and involvement they would each like to put into the role. One of the advantages of franchising is the range of ownership models available. If you are approaching franchising as a family, each member may have varying degrees of how much involvement they want to take on.
Some franchise businesses may require a significant time commitment from their franchisees, especially in the beginning when things are getting off the ground. If this does not align well with your family’s lifestyle, finding a franchise business that requires less involvement may be a better decision. On the contrary, if a full-time, hands-on approach is something some of you want, look for a franchise business that allows this level of responsibility.
Determining how much time and commitment each member of your family wants to allocate from the jump or solidifying a plan that will allow some members of your family to commit more time than others is a great first step in moving forward with selecting franchise businesses that can provide a suitable ownership model.
PLAY TO YOUR INTERESTS AND STRENGTHS
When exploring franchise opportunities that will cater to your family’s interests, finding common ground may feel a bit challenging, especially if there are varying opinions. Nonetheless, selecting a franchise that ignites joy in each family member is important. By doing so, you can ensure that every member is invested and engaged in the success and growth of the franchise. After all, choosing a franchise industry you’re passionate about comes with several benefits, including a greater sense of motivation and purpose and less workplace stress.
Other than narrowing down the industry that interests everyone, a great way to ensure each family member feels excited about a franchise opportunity is to select a business that aligns with their strengths. For example, if someone in your family excels at customer service, find a franchise that offers customer-forward services to leverage their abilities. Although it may require some extra digging and a possible Q&A session with your family members to determine all of their franchise business-related skills and qualities, doing so can help narrow down the list of franchise businesses you are pursuing.
CONSIDER HOW WELL YOU WORK TOGETHER
Working with your family can result in a supportive and understanding environment. However, navigating disagreements and constructive criticism may hit more personally than with business partners you’re not related to. As you explore franchise opportunities with your family, consider what environment will help everyone thrive. If the franchise requires significant teamwork or managerial roles, think carefully about whether that would be the best fit for your family and how each of you will embody roles that will result in a productive working environment.
Have a frank conversation about expectations, various responsibilities, and potential challenges that could come to the surface while working together before signing a franchise agreement.
DO THOROUGH RESEARCH
Researching may seem like a given, but learning more about the various franchise businesses you are interested in and diving deep into each opportunity can provide clarity. For instance, speaking with existing franchisees of the business you are interested in can teach you about the opportunities it can provide your family. Their feedback can offer realistic firsthand insight into the experience.
Another great way to explore a franchise business a bit more deeply is to attend their discovery day. This may happen a bit later in your journey, as many franchises require prospective franchisees to apply and meet the requirements first. However, a franchise discovery day can be a great way to receive more hands-on information about the business and what’s involved as a franchisee. This can provide your family with clarity on what is to be expected, which can help you make a decision.
VERIFY FRANCHISOR TRAINING AND SUPPORT
There can be varying degrees of training and support provided by a franchisor, depending on the business and the nature of the products and services it provides. Determining just how much is provided by each franchise can help you decide which one will fit best with what you are looking for.
For example, if a great deal of initial and ongoing training is something that is important to you and your family, determining exactly what this will look like and how it will be delivered is important. If you have family members who require training, you’ll want to know if your franchisor can offer that. And while it is fair to say it is rare for a franchisor not to want to help their franchisees succeed, it is critical to determine what they will offer from the jump to help you feel confident in investing in their business.
Investing in a franchise can be a significant financial step. When finding a franchise that is right for your family, finances can play a role in that decision, as you want to ensure that you have the resources available to meet not only the requirements set by the franchisor but the ongoing expenses, as well, such as royalty fees and anything else that may pop up after things start rolling.
Before selecting a franchise, it is also important to determine who will contribute most of the investment, as this can help your family determine the investment budget. It can also help to narrow down the franchise business options you can choose from, as you’ll know what’s on and off the table.
As you discuss financing with your family, another important and related topic is how any profits will be split. Although you are still in the beginning stages of your franchising journey and profit may not currently be top of mind yet, expectations should be discussed early with your relatives. Will profits be evenly split? Will the initial investment and/or time allocated to the franchise influence the amount of profit each family member receives? Answering these kinds of questions will set realistic expectations and avoid misunderstandings and disagreements.
Succession planning in franchising, which is the process of preparing an individual (or multiple) to take on a future leadership role when the current leader steps down, can be a necessary conversation when approaching franchising as a family. This can be especially true if you have younger family members entering this investment, as they may want to take over if you decide to retire or move away from this role.
Selecting the right franchise opportunity for your family can play a significant role in having a successful succession plan. After all, if younger family members are considering taking over the franchise business in the future, it is important that the franchise business is something they enjoy. To ensure a smooth transition, discuss ownership transfers with the prospective franchisor to determine if it’s feasible and what steps you would need to take to make it happen. Look for a franchise business that offers this type of support.
INVESTING IN A DOG DAYCARE
If working with dogs is a passion for you and your family, we encourage you to determine if Dogtopia is a good fit for you. Many of the franchisees in our network established their location as a family business.
To learn more about this opportunity, check out our Why Dogtopia? page as well as our franchising FAQ page for further details. If you are ready to take the next step, fill out our online inquiry form here.