By Trish Benedik
With thousands of franchises in the United States, there are various options from which to choose. Choosing a franchise is no small task – it’s like finding a needle in a haystack.
When you are buying a franchise, there are many factors to be considered.
Following are 5 key things to consider when buying a franchise.
How many years has the franchise been in business? Many times a business will exist for several years before becoming a franchise. The longer the business has been franchising, the more information you will be able to glean from their past experience. As a franchise matures, their systems and processes mature as well. Therefore, the longer a franchise has been in business, the higher likelihood of franchisee satisfaction and success.
Number of units/locations
How many franchisees are there? How many locations are actually open? More locations, means more brand recognition, more marketing expenditures, and more franchisees to work with. There are exceptions to this since emerging brands with few locations, offer separate challenges and advantages.
Systems, procedures, and operations
Are the systems, procedures, and operations well-written, easy to follow and implement. Are the expectations set forth by the franchisor reasonable and attainable? How do current franchisees feel about the systems and procedures already in place?
Support from the franchisor
Find out about assistance with marketing and advertising, training, and continuing education. Exactly what type of support and how much training will be provided.
Culture of the organization
Are you comfortable with the culture and values of the organization. Can you work with this group of people for the length of the contract anywhere from 5-20 years?
This is an abbreviated list of things to look for when buying a franchise. Select Franchise Consulting can provide you with a much longer list of considerations along with additional information on franchises and how you can find a business that is the right fit for you. Buying a franchise is a life-changing decision, be sure to conduct extensive due diligence. You will also want to talk with existing franchisees, a franchise attorney and an accountant. Get to know the franchise well before signing an agreement. Working with a franchise consultant to narrow your choices can save you much time, aggravation, and thousands of dollars.