Researching Your Franchise

 

Researching Your Franchise

 

We have talked in previous articles about how to identify what your personal objectives are in selecting the kind and type of franchise opportunity that would fit your personal skills, goals and strategies.  Armed with that model you are ready to look at specific franchises to see how they and you fit together. 

 

Knowing who you are and what you want to achieve in business will help you to identify businesses that match up with your goals and strategies.  Once you have identified a few of those businesses you are now faced with the biggest and most important task in selecting the franchise system you ultimately become part of:  RESEARCH! 

 

Doing research on a franchise is a lot like peeling an onion.  You do your research layer by layer until you reach the center.  You MUST be prepared to walk away from any and/or all of these businesses if, as you peel away “another layer of the onion," you find something that does not properly match up with your personal abilities, business strategies, or ethical standards. 

 

Doing the research takes time, but it is not hard. There are several musts, and you must do each and every one to insure yourself the best chance of making a good decision.  

 

We have already said that we want to make sure that any franchise organization that you investigate should meet certain criteria.  Briefly, any franchise you become interested in should: 

 

• Be in a Stable Industry.
• Be a leader in that industry  (whether the industry is large or small).
• Be Affordable to you.
• Be Very good at the core business that you will be in.
• Have room for you to expand and grow.
• Have good future vision for growth.
• Be in a non-consolidated industry (your competition is not made up of major chains with great competitive strength).
• Has a much needed product and/or service and is an excellent provider.
• Has an acceptable level of risk from YOUR point of view.
• Is an ethical, and franchisee friendly franchisor with happy successful franchisees. 

 

Having satisfied yourself that the franchise you are looking at meets the above criteria, you now focus on the issue of the specific franchises you are interested in, and how YOU will fit in. These are the research steps you will want to do to accomplish this: 

 

Start with the sales literature.  Read the brochure that all franchises have.  If there is a video, make sure you see that too. TRY TO GET A COPY OF BOTH AND SHOW THEM TO OTHER FAMILY MEMBERS.  You will want their opinion, and their support, and the more they know, the less likely they will be afraid to join you in supporting your dream. 

 

As you talk to others, including friends, relatives, etc. seek their opinions.  But, beware of well intentioned people who are ignorant as to how a particular business works.  Comments like “all franchises are good” or “all franchises are bad” are ridiculous and won't help you.  Don't get scared off if you hear them.  Stick to your investigation.  The truth will soon reveal itself if you see it through your own eyes, and are thorough in gathering your information.