Owning a bagel franchise is an amazing venture that you can invest in. In fact, we at Shmagel’s Bagels are proud to say that our two bagel shops in Ocean City, MD are seeing a lot of growth and engagement with the community.
As for the rest of the country, a 2018 survey revealed that close to 210 million Americans eat bagels. That’s a pretty huge consumer market, if you ask us! With more people welcoming bagels as part of their staple diet, aspiring entrepreneurs need to seriously consider running their own bagel shops.
Although getting a bagel franchise for sale is a worthwhile investment, you need to prepare for the purchase. Note that franchise opportunities such as a bagel store are easy to get and implement but planning and preparation are key to make your business a success.
7 Things You Should Do Before Buying a Bagel Franchise
Interested in a franchise bagel shop for sale? Here are some things you need to do first:
1. Assess if you would like a bagel franchise
You may be attracted by the promise of great returns and an exciting growth for the bagel industry but check if you are into this kind of business.
Just like in any business, you should have the determination and risk-taking savvy to pull off this kind of endeavor. Startups gain success mainly through the effort and heart of the business owner, and the same is true with a bagel franchise for sale via franchising.
On top of this, running a franchise requires you to follow a lot of rules especially in terms of quality assurance, branding and marketing, and other operational concerns. As the franchise owner, you need to be a follower and doer more than being an idea generator.
2. Know how franchises work
In a nutshell, a franchise network is owner by the franchisor (individual or corporation), while you are the owner of your own franchise store. There’s a process of hierarchy and responsibility involved in franchising opportunities, and so you need to know this before venturing into this kind of business.
Don’t worry, though, because you can always ask franchisors about the process of getting a franchise and running your own store.
In our case at Shmagel’s Bagels, you may visit our Contact page and fill out the inquiry form. That way, we can send you more information about bagel franchise cost and other requirements.
3. Prepare your financials
One of the biggest misconceptions about buying a franchise bagel shop for sale is that you only need to prepare money for franchise fee and initial equipment cost. Although much of the groundwork involved in setting up a franchise store is more convenient than putting up your own business, you also need to shell out for marketing, staff compensation, consumables, and other unforeseen expenditures.
Having said that, you should prepare a considerable budget that goes way beyond the franchise fee and initial cost. Remember that you may not receive a significant amount of profit at the start because you still need to pay off your initial expenses. In terms of budget, prepare for at least 6 months’ worth of spending.
4. Ask franchise companies about their offering
Some people may introduce themselves to you as franchising consultants, but you need to be wary of them. A number of them are merely in it for commissions instead of offering a good opportunity for your benefit.
Why don’t you ask the franchisor directly about their business? Most franchise companies have online channels where you can contact them for inquiries.
When talking to franchisors, ask them about the franchise package. What does it include? How much will everything cost you? How much training will they be giving you and your staff? Getting answers to these questions will give you clarity and peace of mind as you mull over this decision.
5. Check the status of existing franchisees
One way of knowing whether a particular franchise is successful is through its stores. Do a quick online search on the locations of a franchise that you’re interested in.
If you have the means to do so, visit some of these locations and make an appointment with the franchise owner. From this meetup, you can ask about how the franchisor helped them start their businesses, what you should expect after buying the franchise, and how profitable the business is.
Other questions that you may ask include the following:
- Are there hidden costs when buying the franchise?
- What things did they learn that the franchisor didn’t tell them before?
- What was their actual return on investment?
- What were some of the biggest challenges and concerns that they had to face?
- How much support does the franchise corporate headquarters offer?
6. Check if you like the franchisor
Get to know the franchisor exhaustively before deciding to purchase. You can Google them and check their online reputation, especially in their dealings with franchise owners past and present. Check the lifespan of the franchise company and of the individual franchisees.
In the end, you may wind up deciding on gut feel, and this isn’t so far-fetched if you ask us. With the wide array of lucrative and trustworthy franchising opportunities available, it may eventually boil down to your personal preference.
7. Learn how to run a franchise
Unlike a standalone business that you’ve built yourself, a franchise investment involves a boatload of guidelines and rules that you need to follow. All of these things are meant to serve two purposes:
- Uniformity and branding: Franchisors want to keep their stores look the same, regardless of the location. This is a branding strategy that is essentially a collaborative marketing technique by all of the franchise stores.
- Quality assurance: Whatever franchise business you venture into, you need to follow strict quality guidelines for the benefit of the entire network. You probably don’t want yours to be labeled as the worst franchise store in the lot, right?
Bottom line, learning how to run the franchise shouldn’t stop. Treat every moment of your business lifespan as an opportunity to learn from mistakes and improve on successes.
What are you waiting for? Start preparing for these things and claim your stake on a bagel franchise today!