6 Questions to Ask a Franchisor Before You Invest
Investing in a franchise is an exciting experience, but it's important to ask franchisors the right questions so you can make the right decision.
WHAT IS MY INITIAL INVESTMENT AND WHAT DOES IT PAY FOR?
The industry you decide on and the franchise model you choose will greatly affect the cost of opening your new business. Whether you’re looking at food service, education or home improvement, it’s important to understand how market variables will affect your initial investment.
Startup costs should include the franchise fee, marketing fees, franchisee training and sometimes more, depending on the franchise and level of investment. With Budget Blinds, your initial franchise fee is $89,950, and you’ll need approximately $35,630 in working capital for tools, equipment, marketing and more.
WHAT CAN I EXPECT IN RETURN ON MY INVESTMENT?
Among the questions to ask a franchisor, some version of “How much can I make?” is always up there. It’s reasonable to assume that a franchise investment should provide a return for both the money and the work invested in the business, so calculations are much more complicated than they would be with a passive investment. And the expected return is likely to be much higher. You want to see your hard work pay off.
One of the best ways to determine a franchise’s potential profitability is by analyzing Item 19 of the Franchise Disclosure Document, which outlines the business’ financial performance for the past year as reported by franchisees. Company-owned outlets are also sometimes included. Item 19 is an optional disclosure under the Federal Trade Commission. Keep in mind that a franchisor cannot predict earnings or net profit, since each franchisee is an independent operator and both reporting methods and the types of expenses taken will vary. Speaking with other franchisees is a good way to gain a fuller sense of the kind of return on investment they have experienced in the past.
DO I NEED PREVIOUS EXPERIENCE TO SUCCEED?
The best franchisors care less about your industry background and more about whether you possess an entrepreneurial spirit, a passion for quality products and customer service, and a willingness to learn.
For over 25 years, Budget Blinds has been equipping motivated entrepreneurs with all the tools and support they need to succeed in the home improvement industry. Ranked No. 12 on Entrepreneur’s Franchise 500 list, our success is derived by attracting quality individuals who possess a passion for quality products and excellent service. As franchisor, it is our responsibility to empower you to thrive as a business owner.
WHAT TYPE OF TRAINING AND ONGOING SUPPORT CAN I EXPECT?
As one of the greatest benefits of investing in a franchise, proper training in that system is essential to your success as a franchisee. This includes not only operational training, but also instruction on how to hire and train employees, financial management, and how to attract and retain customers.
Every Budget Blinds franchisee gets intensive franchise training, both through classroom and hands-on learning. Our expert staff provides highly personalized and informative training on everything from immersive product knowledge and the consultative sales process to financial management and more. You’ll also learn how to use our proprietary CRM software and how to follow the Budget Blinds business model to successfully run your business.
Support for the franchisee continues after the completion of training, including but not limited to, design and sales webinars, an annual convention, and regional meetings. Regional Operations Managers and Regional Field Marketing Managers are also available to provide you with assistance along the way. Our extended support program will help you develop goals and track your financials, including creating a 12-month plan.
WHAT TERRITORIES ARE AVAILABLE?
Where do you want to open? In your neighborhood? Across town? Generally, connections to the local community are a plus in building a successful business, from knowing your customers to hiring employees. Many franchisors also strongly encourage their franchisees to become involved in their community to build goodwill and brand awareness. Each Budget Blinds exclusive territory is a minimum of 35,000 households, and we review each area with you to ascertain that the territory demographics meet our viability standards.
WHY SHOULD I CHOOSE FRANCHISING NOW?
There is no doubt that 2020 was a challenging year for many businesses. But the home improvement industry was able to weather the storm better than others. The market for home improvement services continues to grow, with 2021 finding homeowners focusing more on renovation and restoration than relocation. With the increased presence of working from home, housing crises, and a focus toward more intentional living, folks from all ages and backgrounds are making the most of their living spaces by recruiting trusted experts like Budget Blinds.
LEARN MORE ABOUT FRANCHISING WITH BUDGET BLINDS
Budget Blinds takes pride in being the No. 1 blinds and window coverings franchise, for both our commitment to excellent customer service and for supporting our franchisees. By keeping up to date on consumer trends, we adapt our business to stay ahead of the competition. Just as we provide custom solutions that cannot be found elsewhere, if you’ve got questions to ask a franchisor, we’ve got answers.
Franchisees are drawn to Budget Blinds for our industry-leading business model, comprehensive support, and growth potential within a thrilling industry. If you are interested in learning more about franchising with Budget Blinds, take the next steps today.