Factors to Consider when Buying a Franchise

In her article,"Consider With Care: Tips for Evaluating a Franchise Opportunity", Jill McCullough offers some of the following helpful points:

• Search new sources about the franchise opportunities and, specifically, the franchisors that you are considering;
• Find out if the franchise system you are considering is focused on the franchisee and a quality product and not just interested in a fast growing franchise with lack of support and resources for the franchisee;
• Speak with multiple franchisees in the franchise system ranging from franchisees that have been in the business for the past 3 to 12 months and also franchises who have went through a renewal cycle;
  
• Speak to a qualified franchise attorney and your CPA.

One critical point that prospective franchisees should recognize that there are abundant research and information resources on the internet including New York Franchise Law Blog, Franchise King Blog, Rush on Business and FranchisEssentials.

Finding the Right Franchise

One of the most difficult and critical tasks for prospective franchisees is finding the right franchise opportunity.  This is not an easy task and requires an analysis and evaluation of many factors.  While no franchise opportunity is "perfect", over at the excellent Franchise King Blog franchise consultant Joel Libava offers franchisees some great insight into the qualities of the "perfect franchise".  According to Mr. Libava the "perfect franchise" should offer the following:

• Major Brand Power;
• Constant Innovation from Management;
• Uniformity;
• Solid Training Program;
• Extremely profitable franchisees; and 
• An engaged [utilization] of Social Media

For the prospective franchisee, when evaluating a franchise opportunity give serious and thorough consideration to these factors. Ask questions and make sure that your evaluation goes beyond (well beyond) the franchisors sales literature.  For some additional information on selecting a franchise and "franchise due diligence" definitely check out the Franchise King Blog and the "Franchisee Due Diligence" section of the New York Franchise Law Blog