4 Things to Look for in a Good Franchise

There’s a reason that budding entrepreneurs sometimes get overwhelmed at the thought of considering franchising as a route to become their own boss. There are literally thousands of concepts to choose from, at all levels of investment. The biggest part of finding the right franchise is locating one that matches up with your personal goals and lifestyle—something we FranNet consultants specialize in providing you, as a client.

Once you’ve taken your free assessment and we’ve discussed your preferences, it’s time for us to explain what to look for in a good franchise opportunity. Here are four key considerations:

Stability

You want a franchise whose proven business model is structured with a strong corporate support system. An established brand should have programs in place that strengthen the entire family of franchisees. You’ll want answers as to how this support is provided. What does the training program look like? How much assistance will you receive at startup and the ongoing phases? Is their validation program unbiased? What type of councils, programs and leadership initiatives do they offer franchisees?

Market Opportunity

Franchises sell products or services, and you’ll need to know what the market looks like for your particular offering. Don’t just settle for the annual industry revenue number, find out what the demand looks like on a local level—because that’s where you’ll be offering up what you have to sell your clients. Whether your concept is B2B or B2C, do some market research and due diligence to gauge consumer demand.

Key Differentiators

There may be a lot of different mousetraps, but some are more superior than others. The reason has to do with their key differentiators. What does the franchise do better than their competitors? Are they in a niche market with little competition? Imagine yourself as a future franchisee and look for ways that you can stand out and offer a better product or service to your potential customers.

Systems & Operations

Good franchises rely on a proven business model that has sound procedures, systems and operations in place. Everything from vendors to supply chain management, you should be able to tell if you’re buying into a robust franchise system. Ask around during validation. What are the platforms you’ll be working with? Are the solutions tech-savvy? Is the franchisor committed to oversight and continual improvement?

These four items are a solid gauge for determining whether or not a franchise is up to your standards. As always, a good deal of observation and due diligence goes a long way.

When the time is right for you to look for the four things that make a good franchise opportunity, FranNet of Dallas-Fort Worth is standing by to assist you. We’ve been there before with many clients and helped them navigate their way to business ownership through franchising—and we can do the same for you! If you’d like to hear more, please reach out and schedule a no-cost, no obligation meeting with us. Together we’ll find a franchise that meets your standard of business ownership and lifestyle goals.

 

About the Author

Sara Waskow is the Dallas-Fort Worth Market President for FranNet, the nation’s leading franchise consultancy. She’s a career transition specialist whose no-cost, no-obligation expertise matches individuals to business opportunities that best fit their unique goals and talents. Sara is a member of Success North Dallas, the Southlake and Grapevine Chambers of Commerce, and the Cowtown Executives Association. She graduated from Texas A&M University and has lived in the DFW area for over 30 years. She can be reached at: [email protected].

Dec 9, 2020