Many of our franchisees at Winmark – the Resale Company™ were first introduced to our resale franchise opportunities after having great customer experiences in our stores. After being a loyal brand follower and customer, it’s easy to envision how fulfilling life could be as an owner of a resale franchise you're passionate about.
But while being a long-term fan of the brand might pique your initial interest in franchising, there are several things you should consider before moving forward with a resale franchise opportunity. Becoming a franchisee is a long-term commitment, so it's critical to do your due diligence and take the necessary time to research and evaluate your options to determine if the franchise is right for you.
Here are four tips for exploring resale franchise opportunities.
1. Speak with Existing Franchisees
If you want to get an inside look at life as a resale franchisee, there's no better way to do so than speaking with existing franchisees. While you might learn a great deal of information from the franchisor’s website, a franchise brochure or even at a franchising conference, no one can provide better insight than current franchisees. When researching franchise opportunities, be sure to speak with a variety of franchisees — people who live similar lives as you, have similar goals and interests, etc. Doing so will help you envision life as a franchisee and provide you practical insight into what owning a franchise is really like.
2. Research Competitors
When exploring different franchise opportunities, it's essential to take a look at competitors in the space. As a franchisee, you'll want to know who you're up against. It's necessary to understand the difference between your brand and your competitors' brands and the competitive advantage your resale store offers. While you should feel confident about your resale franchise and all you offer, you'll need to grasp what other resale stores provide and what consumers in your community are looking for. With this in mind, you'll always be one step ahead of the trends, and you can better cater to your local market.
3. Review the Local Market
Before moving forward with a resale franchise opportunity, you should review the local market. Aside from studying competitors, it's also important to consider whether or not a resale franchise would make sense in your community. After all, choosing the right location for your store is one of the most important decisions you can make as a franchisee. Consider whether your local market could benefit from a retail resale franchise and what would be the best location for your store — research demographics, the commercial landscape, what products or services are in demand in your area and which resale franchise would make a good fit.
4. Review the FDD (Franchise Disclosure Document)
After all is said and done, one of the most critical steps to better understand a franchise opportunity is reviewing the Franchise Disclosure Document with an experienced franchise lawyer. The FDD provides information about the franchisor, the franchise system, the business model and many other aspects of the franchise. There are 23 items in the FDD that provide all necessary information and requirements you'll need to understand ahead of being awarded the franchise. Generally speaking, the FDD should answer all remaining questions you have about the resale franchise opportunity that weren't previously answered after speaking with existing franchisees, reviewing competitors or exploring the local market.
Whether you're a first-time or experienced franchisee, conducting your research and asking the right questions ahead of investing in a franchise can only contribute to your long-term success as a franchisee.
Ready to Explore Winmark’s Franchise Opportunities?
With 30 years of franchising experience and more than 900 franchise owners representing over 1,265 locations for our five brands, our numbers speak for themselves. Looking to join a well-established resale retail franchise? Contact us today to learn more!