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Tips for Choosing a Selling Franchise Business for Beginners

By pauline Dec 24, 2022

Franchise comes from the French “affranchir” which means to liberate. The meaning of this liberation is that a person or business entity that wants to buy a franchise is given the freedom to use, produce or sell something. Franchise is known as the franchise itself, many entrepreneurs are interested in the franchise business, because it is considered to be able to provide quick profits without having to do promotions from the start. because people already know.

Business Purpose

Before you think about wanting to earn income through a franchise. You also have to look at what kind of lifestyle or business goals you want? Because, a franchise is not just an investment. But it’s also a lifestyle, so if you enjoy it, then you can live it very well.

Company culture

This aspect of the franchise is actually less measurable, but it can be an influence that has a significant impact, this is related to how they treat their partners. Look for franchise brands who are enthusiastic and can work together and be open with other partners.


You have to think about, are the brands selective about who they sell to, or will they always welcome anyone who is financially qualified.

Track record

If they haven’t proven the concept, and are only building one or two locations, then you should probably reconsider. Where, with some of these track records, of course this can show positive growth in different markets with business reports on what happened. Do not buy a franchise that is still experimenting. Be wary of paying to be their guinea pig.

Reliance on royalties

On top of the initial franchise fee, most brands generate revenue by collecting a percentage of sales or net revenue from each partner by taking an average royalty of 5 percent to 6 percent.


The franchisor collects a percentage of your gross sales, whether you are profitable or not. The best brands that offer franchise opportunities, are definitely reflected by high ROI. Ask how much data they collect about the advantages of franchise partnerships and how much net income a partner can earn.

Perform validation

This is your chance to talk to existing partners. Of course the brand will provide testimonials from its partners, so you have the opportunity to ask questions to get a broader perspective. But remember, their feedback is based on their company’s perspective and values. Their feelings are not necessarily in line with your vision and mission.

By pauline

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