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5 Things to Consider Before Owning a Franchise

Kumon offers tips for aspiring entrepreneurs looking to select a franchise.

Kumon

Franchising is a big business. In the U.S. alone, over 745,000 franchised establishments employ 7.9 million people while funneling billions of dollars into the economy. The franchising industry offers aspiring entrepreneurs an avenue to explore small business ownership, while being supported by a bigger business network.

That being said, not all franchises are created equal. The best franchisors provide entrepreneurs with a solid business model, ongoing training and support, a well-established brand and more at a competitive price.

Here are five things you should consider before turning owning a franchise into a reality.

1. Demand.

As is the case before starting any new business, it's imperative that you do your research. Once you have a short list of potential franchises that you are interested in, find out if there is a demand for the product or service they offer. Before jumping in with both feet, make sure that the business is sustainable and marketable.

For example, the global market for private tutoring services is forecast to reach $227 billion by 2022. As parents continue to seek high quality learning opportunities for their children, the supplemental education industry continues to thrive. Kumon, the world's largest after-school math and reading program, has a massive global footprint with over four million students studying at nearly 25,000 learning centers in 50 countries and regions.

2. Cost.

The financial commitment to opening a small business is a major consideration, and is typically one of the biggest questions or deterrents. The initial investment for starting a franchise can vary greatly so it's important to discuss it with the franchisor so you have a clear understanding of your investment.

How much net worth and capital do you need? What's the initial investment? What are the start-up costs and franchise fees? Kumon is an attractive opportunity because it has one of the lowest franchise fees at $1,000 and all franchisees qualify to receive initial financial incentives valued up to $19,000 to assist in start-up costs. Potential Kumon franchisees need to have investment capital of $70,000 and a net worth of at least $150,000.

3. Available opportunities.

If you're considering investing in a franchise, one of the first things you'll need to think about is where you want to open, whether or not the franchisor has that area available, and if there's flexibility in market ideas. Some franchisors are very strict with where locations can be opened. With Kumon, if you don't immediately see an availability, you can still present your market ideas for consideration.

4. Training and support.

Great franchisors offer a tremendous amount of ongoing business support to their franchisees to help ensure their success. Look for companies that offer their franchisees all the tools necessary to succeed—solid business plan, professional training, marketing, and continuous research and development programs, which keep the business current and competitive.

Kumon offers all the needed training before franchisees open their doors, but it doesn't stop there. All Kumon Franchisees are encouraged to attend monthly training meetings with corporate staff and other franchisees in the region. They also have the opportunity to attend professional development conferences, which is an excellent way to network, keep skills sharp and share best practices.

5. Credibility.

Just because a company offers franchising opportunities doesn't mean it's worth investing in. While conducting research, make sure the franchises you are looking at have a proven track record and credibility. Kumon, for example, was created 60 years ago by a dad who wanted to help his son do better in school. Today, it is not only time-tested, but also one of the largest franchisors in the world. For 17 consecutive years, Kumon has been ranked #1 in its industry category in Entrepreneur's Franchise 500 Issue and it was recently ranked sixth on Entrepreneur's Top Global Franchises List.

While many people aspire to become small business owners, not everyone knows how to turn their dreams into a reality. We hope these five tips helped you realize that the idea of small business ownership doesn't have to be unattainable. Making the decision to own your own business encourages you to find a career that is meaningful, rewarding and something you are truly passionate about. Explore the franchising industry and the limitless opportunities it has to offer.

For more information on Kumon, visit kumonfranchise.com or call (855) 448-8323.

Kumon

Brand Spotlight Partner

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