Food is always a great item to sell, especially the ones that are affordable and easy to carry, such as baked goods like cookies. People with a sweet tooth are fond of such tasty treats that they can easily take with them at the office, school, road trips, or at home. Baked goods can be consumed as snacks or as desserts so they are highly popular.
Now, if you want to combine your love for baked treats and your interest in business, a baked goods franchise business should be a great idea. There are franchise owners who can help you set up your own baked goods business without the usual birth pains of a start-up since a franchise has systems already in place for franchisees. This will ensure that you can hit the ground running and start your little business venture with ease.
But before you ink a deal with a baked goods franchisor, be sure to check out these five essentials things first:
The initial cost
Ideally, you should have enough funds to support your business for up to a year as you strive to get your return on investment or ROI. The initial costs include the expenses for the franchise fee, baking equipment and supplies, rent, employee salaries, and other miscellaneous expenses. It would be great if you can recover your initial costs after a few months but to be sure, have sufficient capital to run your franchise for at least a year.
Learn from current franchisees
If you’re getting a franchise that sells delicious cookies and other baked goods, you have to do some research by asking current franchisees some critical questions. These should include the challenges they face, daily operations and costs, and any other vital pieces of information that will allow you to gain a clearer picture of the business. This will also allow you to set your expectations and prepare yourself for future challenges once you have started your business.
Assistance to franchisees
Your research must include inquiring about the specific kinds of assistance that the franchise owner provides to franchisees. This could be in the form of coaching about the intricacies of running the franchise, as well as training and orientation for the store employees. These kinds of assistance are vital in ensuring smooth operations of your planned baked goods store from Day One onwards.
Market opportunity
Just because you’re getting a franchise from a well-known company doesn’t mean that you’ll rake in huge profits in the end. Instead, you have to analyze the actual market opportunity of the business to see if you have a bright future ahead. This involves knowing whether or not you have a strong market for your products and if there are opportunities for expansion and growth. These are critical considerations since you don’t want to place your bet on a business that is clearly on the losing side.
Territory exclusivity
You don’t want to end up getting a franchise when there is already another franchisee from the same company just a few hundred feet away from your target spot. It is thus important to inquire with the franchise owner if you can guarantee territory exclusivity to avoid competing with another franchisee for the very same market.
Getting a business franchise is not easy, as you can deduce from the information discussed above. But with the right knowledge and guidance, you can make an informed decision and secure the perfect franchise opportunity for your planned business venture.
