Written by: Arslan
Opening a fashion franchise business might seem like an easy way to make money. However, if you do not do your homework, you will end up running into hot water. No business is simple.
Do not make the mistake of thinking that buying a fashion franchise business will instantly lead to success.
Failing to plan is planning to fail. The number one regret that most new franchisees have is not doing more research. Therefore, you must put your best foot forward by doing research.
Since the world of fashion is fast-paced, only the most-determined are successful. However, there is no need to worry as we have prepared the perfect post that takes a close look at the 8 hurdles that come in the way when purchasing a fashion franchise.
1. Different Types of Franchise Brands
When in the market for a fashion franchise business, it is important to note that there are different types of franchise brands available. Some of the most popular types of options include high-fashion, classic fashion, bohemian fashion, organic fashion, and so on.
Before you buy a fashion franchise, you have to think about what drives you truly. Have you always been into high-fashion or organic fashion?
When you focus on your passion, you will be able to move in the direction that motivates you. But, you should always think about the demand for the fashion label.
Conduct some research into the different fashion franchise options. Next, you should look up social media, online blogs, and customer reviews to learn more about the perception and quality of the brand. It will allow you to go for an option that is most likely to be successful.
2. Understand that a Successful Brand Does Not Guarantee That You Can Be Successful
Another hurdle that you need to clear is to understand that just because a certain brand is successful does not guarantee that you would also be successful.
Many newbies believe that just because a certain brand has achieved commercial success, it would mean that they would automatically make profits.
Bad high-level decisions, bad strategies, and bad locations can stand in the way of you earning a decent income.
There are some stories that resulted in aspiring franchisees losing money. Hence, you must learn as much as possible about the venture and its ability to generate money.
3. Not a Passive Income
If you think that you can buy a fashion franchise business and expect to generate passive income, you could not be more wrong. The franchisor might tell you that you can make a passive income. But, that is not how it works.
Remember, you will need to hire a team, make high-level decisions, and develop a strategy that helps you succeed. If you fail to put in the time and effort, the business would only fail. Therefore, you must be prepared to dedicate some time to running the franchise.
4. Initial Capital Requirements
When it comes to buying a fashion franchise business or any other franchise such as Carpet Cleaning, you need to know that initial capital demands can be quite intense. The startup costs and franchise fees vary. Capital demands can be intense even for simple franchises.
To get a better idea about the initial capital requirements, let’s take McDonald’s as an example. The cost of opening a McDonald’s franchise is a minimum of $500,000. The company requires the money to be from non-borrowed personal resources to be considered.
In addition to the initial capital, you would also need to pay a certain percentage on gross sales. Thus, you have to account for the costs beforehand if you want to make it through the first year.
5. Lack of Flexibility
Before you buy a fashion franchise, you have to keep in mind that there would be a lack of flexibility. Although you would function as an entrepreneur, you would not be able to make all the decisions. There are likely to be certain limitations that you must know.
Make sure to thoroughly read the terms and conditions before signing the franchise agreement. They will help you understand how much control you would have over the business.
Every brand has stipulations to maintain consistency. Hence, you cannot expect complete control over some of the decision-making.
6. Skills and Experience Are Integral
Starting a new business venture such as a fashion franchise business requires skills and experience. You might think that you have everything under control. However, it is always a good idea to get someone to help you out.
You can either hire someone with experience or get a successful friend to dig deeper into the franchise. They will ensure that you make the right decisions and do not invest in the wrong franchise. It is always better to work together with someone than to go at it alone.
7. Significant Competition
No matter which fashion franchise business you decide to invest in, be prepared for significant competition. The fashion industry is one of the most competitive industries in the world. There are likely to be many competitors in your field.
To ensure that your business succeeds, you need to focus on developing a killer strategy to outperform the competition.
Inquire the franchisor about the competition in the area where you plan on opening the franchise and overall competition and how the franchisor aims to help you succeed.
8. Navigate the Legal Framework
Finally, it can be a hurdle to navigate the legal framework. This is where a seasoned franchisee attorney would come in handy. You can ask for their feedback before signing any contract. You must avoid ignorance as it would result in you losing thousands of dollars.
Buy a Fashion Franchise Business
Buying a fashion franchise business is a huge business. As Heidi Klum always said in Project Runway, “One day you are in, the next, you are out.” Therefore, you need to clear certain hurdles to make it to the top. Nothing comes easy in life. You have to earn it. If a franchise seems too good to be true, it probably is.
*Author Bio: *
Arslan Hassan is an electrical engineer with a passion for writing, designing, and anything tech-related. His educational background in the technical field has given him the edge to write on many topics. He occasionally writes blog articles for Carpet Cleaning London. <https://www.carpetbright.uk.com/carpet-cleaning/london/>