Is It a Good Idea to Buy a Franchise? What You Need to Know
Discover If It’s a Good Idea for You to Buy a Franchise With CoolVu
Entrepreneurs across the country are purchasing franchises at record rates. According to the International Franchise Association, the overall number of franchise establishments will increase by more than 15,000 units by the end of 2024. With such a surge in franchise growth, many potential franchisees are asking themselves: is it a good idea to buy a franchise?
The answer to that question will vary from person to person. Read on to discover if it’s a good idea for you to buy a franchise, alongside the considerations you’ll need to make when choosing a franchise to purchase.
- Is It a Good Idea to Buy a Franchise?
- What is a Good Franchise to Buy?
- Why a CoolVu Franchise is a Good Franchise to Buy
Key Questions to Determine if it’s a Good Idea to Buy a Franchise
Ultimately, whether or not buying a franchise is a good idea comes down to who you are — a few key traits will make or break whether you’re the right candidate to buy a franchise. Here are some essential questions to ask yourself to figure out if now is a good time for you to buy a franchise.
Are You an Industrious Self-Starter?
Like any new business, buying a franchise takes a tremendous amount of personal effort. Although franchisees have the benefit of support from a franchisor, the majority of a franchise’s success hinges on the work of the franchisee. In turn, if you’re looking to buy a franchise, you should make sure you’re a self-starter.
Can you make your own schedule and stick to it? How have you handled long-term commitments in the past? Do you work well without supervision and finish projects independently? If the answer to all of these questions is “yes,” you likely have the industriousness to buy a franchise and operate it with success.
Do You Have Collaboration Skills?
Just as important as being an independent worker while running a franchise is the ability to work well with others. Buying a franchise entails collaboration across the board — from communicating with franchisors to building a fresh customer-base. Communication skills and an ability to give and take feedback will be key to building your franchise once you purchase a license.
What is Your Financial Situation?
Beyond personality traits, there are tangible financial considerations to make before purchasing a franchise. Purchasing a franchise comes with several associated costs, including:
- Franchise Fees, upfront payments to franchisors for the license to operate a franchise.
- Startup Costs, such as real estate, software, and marketing investments.
- Professional Fees, including potential legal costs, realtors, accountants, and more.
- Royalty Fees, paid monthly to franchisors based on a percentage of franchise revenue.
Ultimately, potential franchisees need to consider if their financial situation allows them to undertake these costs. Many franchisees will also take out loans to help cover payments. Before buying a franchise, you should also consider what kind of loans are available to you via your bank and credit score.
What is a Good Franchise to Buy?
When in the market to buy a franchise, there are no shortage of franchise opportunities to take advantage. However, franchises differ in terms of the return on investment you’ll receive for your hard work. Before deciding whether or not a franchise is a good one to invest in, ask these key questions.
What Are the Franchise Fees?
As we briefly touched on earlier, franchise fees are the initial payments due to franchisors that allow for franchisees to run & operate a business underneath a specific brand umbrella. When choosing a franchise to buy, potential franchisees should consider the price of the franchise fee — alongside future fees and financing options.
CoolVu, for example, offers an initial franchise fee of $19,900. However, if paid entirely upfront, that fee is reduced 25% to $14,925. Additionally, CoolVu offers further fee reductions for women, minorities, and first responders, while waiving the fee entirely for veterans. CoolVu also offers in-house financing to all qualifying franchisees, leading to greater flexibility than many other franchise opportunities.
What is the Franchise Term Length?
Becoming a franchisee is a long-term investment; franchise term length dictates how long-term that investment is. Franchise agreements clearly state the term length of a franchise at the time of signing, alongside options for renewing a franchise at the end of a term. Typically, term lengths are anywhere between five and 20 years — CoolVu franchise terms, for example, last ten years.
How Experienced is the Franchisor?
Not all franchisors are created equal. While some franchise opportunities spring from companies that have offered franchise agreements for decades, other franchisors stand on less stable footing with a shorter history of success. In turn, franchisor experience should be a key consideration for any potential franchisee looking to invest.
A solid leadership team is a crucial indicator of franchisor experience. CoolVu’s leadership team leverages decades of experience in both our industry and franchising at large. Jeff Franson, co-founder and CEO of parent company FutureVu, boasts an extensive 25+ year career in the window film & graphics industry. Meanwhile, Mike Herrera, co-founder and president, brings a 25+ year background in franchise executive management.
How Competitive is the Industry?
Competition within an industry can make or break the success of a business. In turn, another key consideration for potential franchisors is which industry they’re looking to invest in. According to the International Franchise Association, some of the most commonly-franchised industries include service-related fields, accounting, clothing stores, and children’s services — each coming with their own levels of competition.
CoolVu franchisees gain the benefit of working within the skyrocketing window film industry. The U.S. window & film market size is only expanding; the time is now to get in on the boom. As a franchisor, we’re in a unique position to help franchise partners take advantage of the opportunity to provide in-demand window solutions
What is the Franchise Marketing Plan?
A major benefit of buying a franchise is having brand recognition to customers. Both franchisors and franchisees alike benefit from keeping brand integrity alive, with franchisors offering laying out guidelines for franchises to follow. Franchise marketing plans outline the marketing strategies a franchise should use to sell their products or services within these brand guidelines.
All CoolVu franchisees undertake our comprehensive in-person training to learn the ins and outs of marketing a CoolVu franchise. This four day program educates new franchisees on marketing strategies, alongside other essential skills including product installation, price estimation, territory profitability, and more. We also offer ongoing support beyond initial training to ensure franchisees are always in lockstep with their marketing.
Why Buying a CoolVu Franchise is a Good Idea
Purchasing a franchise with CoolVu presents an incredibly sound investment for entrepreneurs looking to buy a franchise. Benefits of buying a CoolVu Franchise include:
- Established Brand & Reputation: CoolVu’s loyal customer base trusts our brand, reducing the strain of building brand awareness from the ground up.
- Tested Business Model, Training, & Support: Our proven business strategies and comprehensive training programs lead to lucrative franchises and knowledgeable owners.
- Easier, Streamlined Financing: Leverage our in-house financing, or gain easier bank loans than non-established new businesses.
- Lower Risk: CoolVu franchises have a reduced failure rate compared to independent business startups thanks to our internal support.
- Networking & Community Access: Interact and share best practices with other franchisees through the CoolVu National Network — including at our annual convention.
With proven success in a rising industry, adaptable marketing support, and flexible financing, we’re your top choice for buying a franchise for both long-term and short-term success. Ready to join the team? Contact us today.
