When Jyoti Patel decided it was time to leave her administrative job, she was looking for an opportunity that would allow her to do something she enjoyed while making a nice return. She checked out several franchise options, met with their staff and asked a ton of questions. She ultimately chose Nestle Toll House Cafe by Chip. She says she felt comfortable in making this big career leap because of the on-going training and support that was available through Nestle Toll House Cafe by Chip. She was excited by the opportunity to provide a premium, quality product to the Monterey Bay community while working alongside her husband. For her, choosing Nestle Toll House Cafe by Chip was a big win.
Patel is a classic example of an investor looking for a franchise opportunity that achieves both business and personal goals.
Whether looking to invest in a growing industry, hoping to build a legacy business for their family or pair interests with a business opportunity, buying a franchise is a big decision. It is the intersection of passion, purpose and income.
When buying a franchise, you're purchasing more than a business. You are also gaining a business partner - someone who's in it to win it with you. With any partnership, you should ask the right questions to confirm that it's the best franchise deal and solid partnership for you.
Here are 5 questions you should consider before investing in a franchise.
Is it a strong brand?
There is a new franchise opportunity born every minute, but not every idea can withstand the test of time. It's never been more important to choose a brand with a value proposition that has staying power. The strongest brands really understand their core customers and have a passion for their products and services. It also helps to have a recognizeable name with a loyal fan base.
Nestle Toll House Cafe by Chip is a great example. Many childhood memories are filled with a plate full of freshly baked Nestle Toll House cookies, which make the dessert-themed franchise a win in the battle of dining dollars. Leveraging the brand power of one of the top food and drink companies in the world drives business around the globe.
Do they have a desirable product/service?
When you look at a successful business, it all starts with a genuinely good product or service. Is the product something you would buy? Is it your passion? Have you visited a location to gauge customer reaction? You should also ask for information about the average sales per unit to determine the demand for the product. Some franchises offer a niche product, but a brand like
Nestle Toll House Cafe by Chip
has multiple product offerings such as coffee, ice cream and savory items to increase opportunities to generate revenue. It's imperative to understand the financial model so that you can make an informed decision.
What kind of support does the franchisor offer?
Buying a franchise involves buying a business model and a support system. Utimately, you're starting business for yourself, but you're not by yourself. Documented processes set the foundation for your success.
A franchisor should offer support with real estate, construction, equipment selection, product pricing, operations and local marketing. Franchisors should also be able to share best practices with their franchisees and offer user-friendly operational expertise to pass along as part of the package.
Nestle Toll House Cafe by Chip
offers these services in a a step-by-step approach to give franchisees a head-start to opening a successful business. Franchisees are prepared to start driving sales from day one.
How quickly will you reach profitability/recover your investment?
Strong unit economics allow a new franchisee to reach profitability at a much quicker pace. A good franchise partner understands the importance of profitability by aligning with vendors and distributors who support your business. They should offer expertise in implementing best practices and business metrics that show the roadmap to success. The franchisees at
Nestle Toll House Cafe by Chip
have access to the buying power of a large brand and negotiated pricing.
Are they prepared to target the millennial generation?
According to Forbes,
more than 85% of millennials own smartphones and they use them nearly 50 times per day. Franchises that have embraced social media and mobile marketing campaigns are prepared for the next generation. They have identified new marketing trends and are taking steps to meet the needs of millennials. Great brands understand the emotional connections that are made through social engagement. Social media should be an integral part of any franchisee marketing mix and brands that offer plans to capture this market are ahead of the curve. At Nestle Toll House Cafe by Chip, in addition to the brand social presence, each café operates their own social media pages with access to a toolkit of copy and images. The brand also offers a mobile app and rewards club.
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