There are a lot of things you should consider before purchasing a franchise; the industry, the investment level, the amount of assistance you’ll receive, and more. But more than just details about the franchise itself, you should also consider the state you will be starting the franchise in. States vary when it comes to business laws, successful industries, economic development and in many other areas.
So, before starting or purchasing a senior home care franchise, or any other franchise, in your home state, here are some ways your state could impact the success of that franchise.
Business Laws By State
At the state level, there are franchise registration and regulation obligations placed on franchisors. Registration, filing, and disclosure requirements will vary by state. In some states, you just need to register your business with the state’s Attorney General’s office and pay a fee (which will also vary by state). You’ll just need to fill out some basic information about your business and either mail it in or drop it off. This is the case for “Notice Only” states like Michigan.
But be careful. Other states take a closer look at your registration and can either approve or deny its status. A higher regulation state can deny the registration of a franchise if it seems the business has provided false information.
Before you get started, you should look into this process. You’ll want to know how much time and money it will take to get your franchise registered. Luckily for those that are in a supportive franchise system, they will have a hands-on partner guiding them through these processes.
State Minimum Wage
Since the minimum wage varies from state to state, what your state decides on as a minimum wage could affect your franchise. And, across the country, the debate about minimum wage continues, causing some owners to wonder what stratagies would be most beneficial for them.
While paying employees better and providing benefits can be an asset for a franchise and attract better talent and more devoted employees, for those just starting out, it can be a costly change. It’s important to know the requirements in your state or region and to stay on top of changes that may be in the works.
Also, speak with current franchise owners to see what impact state laws and regulations are having on their bottom line and how they are dealing with changes.
The Local Economy
There are multiple economic factors within your state that could also potentially impact your franchise. These factors could impact how well your business performs and grows within your state. Before purchasing in a particular state, you’ll want to check for local competition and dig into how particular industries are performing in the state you are interested in.
Luckily, for those considering a senior care franchise, growth is prominent across the country. Baby boomers are the largest population and are reaching retirement age, meaning there is a large demand for in-home care. And that growth is expected to carry through 2029.
These are just a few of the ways your state could impact your franchise. For a more in-depth look into individual state laws, you could turn to franchisor you trust to help you make the best decisions for your franchise.