Creating a successful franchise starts long before signing papers and paying the franchise fees. While success isn’t automatic for franchises, the Federal Trade Commission has come up with some ways to start a franchise successfully. Buying a medical franchise involves many moving parts, and therefore, it’s important to do your due diligence in building a good foundation for your investment. Building a successful franchise starts with research into our Men’s Vitality Center and any other franchise possibilities. The first step for success is to find the franchise that is the best fit for you and your community. Here are some ways to find answers to your questions and learn more about potential medical franchises:
- Use the Franchise Disclosure Document (FDD) to investigate and evaluate the franchise opportunity.
- Hire a lawyer, an accountant and an advisor who are familiar with franchises to look at the FDD, the franchise’s financials, your financials, and your business plan. The more experts you have look at the full situation, the better perspective you’ll have for getting started.
- Understand the business model. There will be many facets, including:
- Defined costs – Every franchise will come with set costs including, but not limited to, franchise fees, continual royalty payments, marketing/advertising fees, etc.
- Accurate costs – The total cost of the investment may include items such as equipment, staffing, build out, etc. It’s important to include these in your business plan to ensure you have proper financing.
- Franchisor controls – The FDD will define what the franchisor can dictate to maintain brand and franchise unity, including location approval, appearance of both location and employees, method of operation, and goods and services provided.
- Support from franchisor – Every franchisor offers a different level of structured training and support. Some offer only initial training, while others support franchisees with ongoing training and education.
- Contractual obligations – Each contract will list out the obligations should the franchise be terminated. Likewise, there are details about renewing, as many franchises don’t renew automatically.
- Pay attention to the financial statements in the FDD. Understanding the financials for the franchise can make or break a decision. They can show a strength or they can signal a red flag. This is where an accountant familiar with franchises can be helpful.
- Research the franchise company, demand for the goods and services offered, competition in the area, and current and past franchisees.
- Find out what the franchisor’s income, gross sales and net profits were in the past and for the present year. They are not required to offer this information about potential sales, but may be worth asking.
- Check with the Better Business Bureau and the government, or Federal Trade Commission, for any complaints.
At the Men’s Vitality Center, we want you to have a successful medical franchise. Taking an active role in your search for the right franchise opportunity for you and your community is important to us. Contact our corporate office and speak with a representative about our franchise opportunities in your area and finding out more about our franchises.