6 Start-up Tips When Investing in a Retail Franchise in Texas

Investing in a franchise in Texas can be an exciting prospect. Franchisees tend to have a higher successrate than other types of start-ups and the idea of being an entrepreneur is more than a little appealingto many investors.

Nevertheless, there are some best practices to follow and some pitfalls to be avoided. The following aresix start-up tips when investing in a retail franchise in Texas.

1. Do your homework

One of the great advantages about buying a franchise over other types of business, is that you can investinto a company that already has strong brand recognition. But existing companies can also come withbaggage. Make sure you do your research and learn about any litigation or history of bankruptcy.

It’s also important that you understand all the terms and fees associated with being a franchisee.

2. Spend time with other franchisees

Before you invest in any franchise, take some time to spend with other franchisees and ask them abouttheir experiences. It is one thing to get a sales pitch from the franchisor, but another thing to hear aboutthe real challenges of your future cohorts.

This will help to give you a good idea of whether or not this is really the right franchise for you.

3. Location, location, location

While many franchisors will work with you to pick out the ideal location, more often than not, the finaldecision will be up to you. You’ll need to consider important factors such as proximity to your targetmarket, parking, and nearby competition.

You should also find out from your franchisor whether or not you’ll have protected territory.

4. Provide great customer service

While your customers may visit your store initially because of brand name recognition or curiosity orneed for the product or service, it is great customer service that will keep them coming back. And withmore and more customers posting and checking online reviews, providing a good experience to yourpatrons is more important than ever.

Be sure to hire staff with good customer service skills and provide them with the training they’ll need toserve your customers well.

5. Work with experts

Investing in a franchise in Texas means also having to sift through a number of tax regulations andcontracts. Understanding all of these on your own can be difficult and misunderstanding them can leadto costly mistakes.

It is therefore important that you work with the proper experts who can help you with all of these issuesincluding business advisors, lawyers and accountants. Considering the amount of money that you will beinvesting in your franchise, paying for professional services instead of winging it is well worth theadditional cost.

6. Choose the right business structure

While franchises are considered less risky than other types of business, it is still important to choose abusiness structure that will separate your business assets from your personal ones. You may be able toreceive more favorable tax treatment if you select an LLC or an S structure. Review your options withyour accountant to choose the structure that makes the most sense for your circumstances.

There is a lot to consider when investing in a franchise in Texas, but by laying the groundwork you willbe well on your way to having a successful start-up.