What To Look For

When examining a franchise here are some things to consider. You will want to determine the strength of the franchisor in each of the following categories through your due diligence when speaking with the franchisor and franchisees.

1. Initial Training

   How does the franchisor get you up and running in the business? Is the training in the classroom, in the field, on-line, or elsewhere? How long is the initial training? Who does the training?

2. Ongoing Support

   Is there support for franchisees after they are up and running? What do mature franchisees in the system have to say about the support they receive?

3. Marketing Systems

   Does the franchisor play an active role in marketing? Do they have tried and true methods for getting customers to call or come into the place of business?

4. National Advertising Campaign

   Does the franchisor support a national marketing fund to build the brand on a national scale?

5. Technology Systems

   Is there any technology to streamline your business?

6. Income Potential

   Will this business opportunity provide the income you are looking for?

7. Wealth Creation

   Will this business opportunity provide asset value? What will the business be worth when you are ready to sell?

8. Management Team

   Is there breadth and depth within the franchisor’s management team?

9. Proven Track Record

   Does this franchise concept have a long and proven track record of success?

10. Vision

    Does the franchisor have a clear path for its future?

11. Peer-to-Peer Interaction

    Does the franchisor encourage peer-to-peer interaction and learning with other franchisees?

12. Growth

    Is the franchise system growing in number of units? In average unit sales? How did the franchise system perform in the economic downturn? What is the likelihood of future growth?

13. Sustainability

    Is this a business that could become obsolete or outsourced, or is it a business that is here to stay?

14. Brand and Positioning

    Is the brand growing? Where is the franchise system positioned in the mind of the consumer? Who are the competitors? How are they positioned?

15. Culture

    Do you like, trust and respect both the franchisor and its franchisees? Do you feel a connection to the vision and values of the organization?