A lot of entrepreneurs now believe that the best path towards working for yourself is not through starting a new business, but through owning a franchise. People are looking at owning UPS Store franchises because they believe that it gives them the best of both worlds: independence and support when needed. However, here are three things you should consider before making any permanent decisions about starting a franchise.
1. One Store in One City
A lot of people have this misconception that you can start with one franchise, but eventually move towards owning these stores in other cities and states. While it is possible in a few cases, most franchise contracts only include one location in one city. Since these contracts are typically 10 to 15 years, you probably cannot move to another city until the contract finishes. Are you ready to make such a long-term commitment? If you value a change in environment every few years, you are not ready to own a franchise.
2. What Does It All Cost?
How much money do you have to put into a franchise? This really depends on your finances and the type of contract you sign. A lot of companies help you in the process of getting financing for the franchise. This means you will have to get a small business loan, but UPS or the company in question will help you throughout the process.
Even with this assistance, it is not easy to put so much of your savings at risk when starting a franchise. Only make this commitment if you truly believe that you are ready to make it a short and long-term success.
3. Dealing with People
Being a franchise owner means that you are spending all of your days dealing with people, such as your workers, clients and customers. Are you a people person?