Owning a franchise is tough in any industry. Lincoln Franchise tries to make it easy to thrive in the title insurance industry by making the nationwide network of resources and relationships of Lincoln Abstract & Settlements. Still, owning a franchise is difficult, and owners must be prepared financially, organizationally, and personally.
Ask yourself these 6 questions before owning a franchise
- Are you prepared to manage your own business?
A major misconception about owning a franchise is that it is less work. While it will give you access to the franchisor’s software, insurance, operational policies and procedures, and compliance, it is still your responsibility to grow your client base, and provide products, closings and related services.
- Is the franchise system right for you?
Owning a franchise requires maintaining consistency with the products and services of the franchisor. Becoming a partner means adopting – and benefiting from – someone else’s brand, operations, and procedures.
- Can you afford it?
While owning a franchise provides you with many perks, you must be able to afford the start-up costs and ongoing costs, such as royalty fees. Some franchisors may waive royalty fees if you meet the minimum monthly gross revenue threshold. Do your research!
- Do you understand the legal documents?
It is critical to scrutinize the franchise disclosure document and franchise agreement that contain the terms of your agreement with the franchisor. Some franchisees hire an attorney to assist with this process.
- Is the franchise successful?
When choosing the franchise that’s right for you, research the business background of the company directors, conduct a financial analysis of the company, and take into consideration how long it has been in business. Look for a franchise that is an industry leader with years of experience. It’s also important that the franchisor’s staff is cooperative, supportive, and friendly.
- Do you have a support system?
Owning and managing a franchise requires a lot of time and energy. It is important to have a strong support system both in your personal life and professionally. Hire professionals that understand the franchise culture and goals. As a Lincoln Franchise franchisor, you will be supported Lincoln Abstract & Settlement Services’ national relationships and resources.
Use our Financial Pro Forma Tool
Now that you’ve considered these basic questions, you can start thinking about the nuts and bolts of owning a title franchise. We will help you crunch the numbers and come up with an estimated monthly gross income figure for your title franchise with our Financial Pro Forma Tool. Then you can make your decision! For more information about how our process works, visit our How it Works page.