How to Select the Right Health and Wellness Franchise
Americans becoming increasingly aware of the importance of their well-being has led to a rise in the number of health and wellness franchises that help them live healthier and happier lives. Health and wellness franchise sectors include: gyms, personal training, and specialty fitness; diet and weight loss; back and foot comfort; massage; health food; and supplements.
Although the variety of health and wellness franchises available may seem daunting at first, considering the questions below will help you narrow down your choices to those that are most likely to suit you and meet your objectives.
- What are your interests? Decide if there is a particular health and wellness franchise sector that particularly interests you and look at franchise brands within it.
- What are your goals? How much money do you want to earn? Will the franchise be your primary source of income? Do you eventually want to own more than one franchise? Do you immediately or eventually want more of a management role in the business? What days do you want to work?
- How much can you afford to invest? It’s important to have a realistic idea of your budget when it comes to investing in a franchise. You’ll need enough money to purchase it and to cover at least a year’s worth of living expenses since it is unlikely that the franchise will be profitable enough for you to take a salary for quite some time.
- What skills do you have? Examine your skill set and determine what you are good at doing. While you may have skills that are relevant to running a franchise, you may be lacking in others. It is important to ensure that the franchisor provides you with the support you need and/or that you will be able to afford to hire people to take on crucial tasks that you struggle with.
- What are your long-term plans? How long do you want to run your franchise before you sell it? Do you want to pass it on to a family member? Be sure to find out if the franchise system you are considering will enable you to pursue the exit strategy that interests you most.
Due Diligence Musts Before Investing in a Health and Wellness Franchise
Before investing in a health and wellness franchise, it’s important that you carefully review the Franchise Disclosure Document (FDD) in which you will find answers to many of the questions above. It will be provided to you by franchise brands you are seriously interested in that are interested in having you join their system. The FDD includes information such as estimated start-up costs‚ fees the franchisor will require you to pay‚ and a list of franchisees you can ask to share their experience with you. It’s important that you contact at least half a dozen and ask them questions about support they receive from the franchisor‚ how profitable their business is‚ what they think about the franchisor’s marketing, what their start-up costs were, and their overall satisfaction with their business.
Because FDDs can be hundreds of pages long and confusing, it’s advisable to engage the services of both an accountant and lawyer who specialize in franchising. An accountant can help you understand the franchisor’s financial statements, develop a business plan, identify a franchise system that fits your budget, and determine if the system is likely to meet your financial goals. A lawyer can help you understand your obligations to the franchisor and will let you know if there are any red flags you should be aware of regarding the franchisor, such as a high number of litigation instances or closures.
Just like with any new business, there is no guarantee that investing in a health and wellness franchise will deliver on your expectations. You can, however, increase the chances of its doing so by spending as much time as necessary to take the steps outlined above.
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