Aspiring franchisees must spend ample time researching the ins and outs of the brands they’re considering before signing on with a franchise. Lauren Garcia from 1851franchise shared the following 5 tips:
1 – Study Your Market
Conduct some market research yourself. Search (online and offline) for reputable webistes with franchise insights, like 1851Franchise.com, Franchising.com or the International Franchise Association.
Second, visit regional and international franchise expos, like The Global Franchise Market, IFEInfo.com or FranchiseShowInfo.com. Franchise expos put potential franchisees face to face with franchisors from all over the country.
Finally, ask around. Nothing beats talking to people and getting their direct feedback.
2 – Study the Industry
Once you’ve settled on the best type of business for you, spend some time researching every franchise within that industry. Every franchise has a consumer site as well as a franchise development site, so be sure you’re gathering all the information from the correct places.
Make sure the franchises you’re most interested in have available spots in your preferred area. We have published many Tips about this point that you may want to refer to.
3 – Study the Franchise Disclosure Document
Every franchise is required to have this document. It’s a legal document that contains all the most pertinent information about the franchise, including the financials.
Item 19 is one of the most important components of this document, as it covers everything a potential franchisee would need to know from a financial perspective. This includes current standings of existing units or how the franchise might perform in the future.
4 – Study the Franchisor
Potential franchisees fill out an application, provide confidential information and consent to a background check in order to qualify for a chance to move ahead with the relationship. Some franchises have training centers where franchisees can get a real feeling how things will be moving forward.
5 – Study the Franchisees
Finally, some of the most crucial individuals in your decisions will be the actual existing franchisees themselves. They’ll be transparent and enthusiastic about sharing their experience and the opportunity with someone equally as excited to join.
As always, networking and word-of-mouth can be just the thing a potential buyer needs to seal the deal. Sometimes all it takes is a rave review to get fully on board with choosing a franchise brand.
Source
Get to know who are the industry key players, visit our Interview of the Week page.
To stay updated, visit our Franchise News section.
To learn more, visit our Franchising Tips section.
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