You’ve got your sights set on a certain franchise. It might be a fast-food restaurant, sports equipment store or car repair shop. But how do evaluate its potential as a business? We have a few tips to make sure you’re successful.
First the bad news. No business is perfect.Examine what the worst aspects of a franchise are first. Search the web for complaints by customers and franchisees. Take these reports with a grain of salt, but if you see the same preventable problems popping up again and again, it could be a warning sign. Feel free to reach out to franchise owners for an honest opinion of their work, too.
Too good to be true? On the other hand, is your franchisor making their business seem too good to be true? Do they brag about earnings that are unrealistic for their industry sector? A realistic franchisor will be upfront about the amount of work involved, and when a franchisee is likely to see an ROI (return on investment).
Always do your research. You should talk other franchise owners and visit as many locations as you can, but it’s also good to do other research, as well.
Look to grow. Search for a franchise that has an eye on the future. Restoring old cars? A small niche. Taking care of seniors? Much bigger growth potential due to the aging baby boomer population. Choose with care. You should also look at what franchises are in your area. If there already are a few, that might not be the right fit. Look for gaps or new businesses.
Examine the franchisor. You want to make sure your franchisor has experience and a good reputation.Ask the franchisor about the executive team and its past industry experience. As a potential franchisee, look for a company that has several corporate stores and make sure that success can be replicated. You want to make sure you’re setting yourself up for success and have support along the way!
Once you’ve done your homework, deciding on the right franchise will be a lot easier. So batter up, franchise player! It’s time to put your eyes on the prize.
