While some new security company owners decide to go it alone, there are others who want the security, pardon the pun, of a security franchise. With a security company franchise, you not only get a name that people know and trust, but you get a lot of help to make your franchise successful. Currently, there are four main security company franchises.
1. Shield Security Systems
4. L & W Investigations
Are You Ready For A Franchise?
Before you sign on and pay the franchise fee to use one of the above franchises for your security company, you should do a self-assessment to determine if you are ready to be part of a franchise.
Do you have enough money to join the franchise? Franchise fees will range between $50,000 and $250,000 usually, depending where you are. In addition, if there are a lot of similar franchises in your area, you may have to pay the other franchises so you can operate in their area, finance security company even if they are under the same company name as you.
Also, you need to be able to work within the franchise system. Being an entrepreneur is great, but you won’t be able to try out-of-the-box methods if you are part of a franchise. You have to abide by the rules of the franchise. You work for yourself, but you work for the franchise as well and it is important to remember that. Lastly, there are goals and deadlines you need to reach with a franchise, including certain sales figures per month. Are you going to be capable of reaching these early on with your security company?
What Franchise Is Right For You?
Franchises are one of the greatest economic systems to be created in the past 100 years. With McDonald’s leading the way with the system very early on, it made it possible for small business owners to gain the help of a global company with advertising and financing. Likewise, for the global franchised company there was the benefit of going into a new area with a franchise owner who knew the market of the area. It is win-win for both entities in the franchise system. Of course, all franchises are run differently and you need to find the right franchise for yourself.
Look at these considerations before you choose a franchise:
* How long has the franchisor been operating?
* How long has the franchisor been offering franchises and how successful have they been at it?
* Is the franchisor financially stable?
* What kind of qualifications do you need before you can become a franchisee? Does the franchisor have certain requirements?
* How often are franchises opened?
* What sets this franchisor apart from others?
* What are the requirements of you as the franchisee to the franchisor? More specifically, what do you need to do for the franchisor, including paying them a portion of your sales?
The Franchise Contract
When you choose a franchise, you will be required to sign a franchise contract. As with any contract, do not sign anything without reading it first. It would be a very good idea to have your lawyer and accountant read the contract before you agree to anything. Having an expert eye look at the contract, which is often filled with “corporate speak” can keep you from losing out when you sign on as a franchisee.
The contract must make clear the obligations of both parties in the contract, as well as the cost and extent of the training you will receive from the company. Your franchise fee and any payments given to the franchisor must also be clearly stated in the contract.