Cost: Medium to high. Opportunities can start in the low $100,000 range.
Financing: Fair to moderate. Approval will be based on established cash-flow models, investment amount, and personal net worth. Funding bodies may not cover the franchise fee and/or inventory.
Learning Curve: Moderate to complex. Franchisor may require some previous business experience, especially in sales and management. Retail is a learn-as-you-grow process.
Training: Several weeks of head office training and field training at your location. You may be required to attend some specific technical training if required in the day-to-day operations.
Other Operating Requirements: Expect to keep a home-office where in the first few months of operation you will be bringing paperwork home to complete. Depending on the size of your location, the hiring and management of staff may be required. Overhead will be heavy in the first few years so sufficient working capital is a must. Retail is customer service driven so you should be prepared to develop strong customer relations and implement effective loyalty programs. Royalties are usually percentage-based, between 5% - 10%.
Best Suited For: Individuals who appreciate the predictability and consistency of day-to-day operations within a defined space. You will likely be working no less than six days a week during the first year as you work to establish a customer base. Retail requires many hours of standing, positive attitude, and enthusiastic selling skills. This combination will not suit most people who prefer a less stressful environment and lifestyle flexibility. Profitability may take several years to achieve so patience and determination are virtues retail franchisees must afford.
