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Let’s face it many of the good franchise money making opportunities have been taken a long time ago. But you still want a franchise? What and where do you look? In my opinion, what’s new, what’s hot, what’s the latest and greatest. Is it a fad,does it have the ability to grow, who is behind it?
First you need to find what interests you. Remember you will spend more time running your own businesss than you will at home. So it better be something you like and something that is affordable. Don’t put your life’s fortune, your home, your family at risk for a franchise. Don’t roll the dice and risk it all. Make sure you leave yourself a fall back position.
Once you select a franchise do your homework. Start with the franchisees who have stores for sale. This is done for two reasons, first, you may get a better deal buying existing than a new store. Also, you want to know why they are getting out. The number one reason is usually they are not making it. They will tell you all the problems with the franchise, some true, some not. The more franchisees you talk with that are selling, the better questions you will develop if you decide to approach this franchise to do a new location.
When you have finished your fact gathering quest, focus on the main people running this franchise. How long has the CEO, President and COO been with this company? Has there been consistent turnover at the top? If so not a good sign. Has the company moved multiple times to different states? Usually a sign of problems with that state, also not good.
Support is a huge and important issue. What type of training will you need and how long? Do you also get help when you open the store? Do they have a good marketing system and do they funnel enough money in to marketing the concept? Strong support or lack there of tells you a lot about a company.
New store growth is it a steady 10% or is it not there? Every good concept should have some piece of positive growth. If everyone is selling their stores, also not a good sign.
How about fees? What are these folks charging, is it high or is it low? What’s your buy in and does it make sense? These are just a few ideas of what to look for in your pursuit of a franchise. As you can see don’t make an uninformed decision. Do your home work and go into this with a good knowledge base. Good luck