Entrepreneurs Who Want to Open a Franchise: 8 Things to Know

Leverage your drive, business acumen, and entrepreneurial spirit by investing in a franchise. Here’s what entrepreneurs who want to open a franchise need to know to get their business off the ground.

Entrepreneurs are positioned to thrive as franchisees. With a blend of independence and a willingness to follow proven systems, entrepreneurs who want to open a franchise can use the business model to scale quickly. The total number of U.S. franchises is forecast to reach 821,000 locations by the end of 2024, employing 8.9 million people, according to the International Franchise Association. Franchise businesses are on track to generate $893.9 billion this year. While fast food and personal services are propelling the industry forward, there are numerous opportunities in a wide variety of industries for savvy entrepreneurs to consider.

If you’re an entrepreneur who wants to open a franchise, here are eight things you should know to get started.

1. Understand the franchise model: Familiarize yourself with the fundamentals of franchising, including the roles and responsibilities of both the franchisor and franchisee. The franchise business model is a strategic partnership that allows individuals to own and operate their own business under the umbrella of an established brand. It gives franchisees the right to use a recognized trademark, access to a proven business system, and ongoing support in areas such as training, marketing, and operations. In return, franchisees pay fees and ongoing royalties. Franchising allows brands to grow and penetrate new markets with reduced capital investment and risk. Understanding the balance between the support provided and the independence is key to thriving in this business model.
2. Read the franchise disclosure document (FDD) carefully: The FDD is a treasure trove of information about the franchise, including fees, legal obligations, support, training, and the financial performance of existing units. Understanding this document in detail can help set realistic expectations.
3. Know your financial commitments: Beyond the initial franchise fee, be aware of ongoing royalties, marketing fees, and other operational costs. Having a clear picture of your financial obligations will help in planning and managing your business finances effectively.
4. Training and support: Assess the training and support the franchisor offers. It ranges from initial training programs to ongoing support in marketing, operations, and business management. The quality and extent of the support you receive can play a major role in your venture’s success.
5. Market research and territory: Conduct thorough market research to understand the demand for the franchise's products or services in your chosen territory. Knowing your market and competition can help you strategize and position your business for growth.
6. Legal and regulatory compliance: Be aware of the legal and regulatory requirements for operating the franchise. This includes understanding any specific franchise regulations, as well as local business licenses, permits, and insurance requirements.
7. Build a network: Connect with other franchisees within the franchise system. Learning from their experiences, successes, and challenges can provide invaluable insights and guidance as you start and grow your business.
8. Prepare for hard work: While franchising can offer a path to business ownership with a proven model and support, success still requires hard work, dedication, and resilience. Be prepared to invest time and effort into building and managing your business.

Potential Drawbacks of Franchising

If you have experience in entrepreneurship, understanding the drawbacks of franchising can also ensure you’re on the right path. Franchisees must adhere to the franchisor's established systems and procedures, potentially limiting your creativity and flexibility in how the business is run. There may be restrictions on products or services offered, suppliers, and operational methods. The franchise agreement dictates the terms of the business relationship, including the length of the agreement, renewal options, and grounds for termination. These terms may not always favor the franchisee and can be difficult to renegotiate. The success of a franchise is also closely tied to the franchisor's brand. Any negative publicity or downturn in the franchisor's business can adversely affect individual franchise units.

CCI offers a Scalable Business Model

If the pros of franchising outweigh the cons, Creative Colors International (CCI) is a low-cost, high-reward franchise for entrepreneurs that ticks all the boxes. Specializing in mobile leather and vinyl repair, CCI operates in both B2B and B2C markets, serving a wide range of clients from automotive dealerships to homeowners. Our versatility opens numerous revenue channels, enhancing the franchise's growth potential. B2B contracts can provide steady income, while B2C services allow for direct consumer engagement and brand building. Our dual approach maximizes market opportunities and revenue potential.

We’re focused on providing customers with a cost-effective, sustainable solution. We save customers up to 90% of replacement costs. At least 78% of U.S. consumers value a sustainable lifestyle, according to Nielsen IQ. In addition to providing a sustainable solution, all of our dyes and repair products are non-toxic and environmentally friendly.

CCI keeps start-up costs down by offering a mobile, home-based franchise. Our owners have all the tools they need to serve customers stowed in their vans. Mobile franchises offer flexibility and convenience by bringing services directly to customers, leading to higher demand and customer satisfaction. Mobile franchises often enjoy broader market reach and the ability to quickly adapt to changing market conditions.

Our franchise model is designed for entrepreneurs who seek a balance between independence and support. The initial investment is $101,380 to $121,911. It includes comprehensive training and ongoing operational support. We have a strong brand presence with more than 150 mobile vans serving customers across the country, and our established market position offers a competitive advantage, making our business an attractive option for entrepreneurs looking to make their mark in the franchising world. 

We offer comprehensive training to ensure you are ready to serve customers from day one. Our franchise owners attend three weeks of training at our corporate headquarters, followed by one week of on-site training in their franchise territory. Your franchise territory includes a population of approximately 500,000 people.

Find Out More About CCI

If you're ready to take the leap and start your franchise journey, exploring what CCI has to offer could be the first step toward expanding your entrepreneurial dreams. Request franchise information to learn more about CCI.

*This is a historical representation of what some of CCI’s franchised agencies earned, as described further in Item 19 of the FDD.