There are many appeals to franchise ownership.  You are entering into a proven system with the expectation of less risk.  You have a support network of other business owners just like you.  You have all the tools and training to succeed at your fingertips…and so on.  But deciding to get into franchise ownership is only half the battle.  What kind of business to take on can be a whole other can of worms.

While for the most part, franchises are a safe bet, however, there are some tricks of the trade when beginning your exploration process.  There are thousands of franchise systems out there in so many exciting industries. 

 How do I know what differentiates a good franchise from a not so good?  Well, here we dive into those details.

Support From the Top

You know that saying, “you are only as good as your leader”?  Well, they were talking about a franchise system specifically (not really, but let’s pretend).  When exploring franchise opportunities, be sure to take a deep dive into the support and training programs provided.  

Is the training extensive?  Does it have processes and procedures in place?  Are the standard operating procedures built out and followed?  All of things are important to your business’ future success.  No matter how big or small, a franchise can succeed as long as it has the adequate support it needs from the franchisor.

State of the Market

While your passion might originally guide your initial decision-making, industry stats and projections could encourage you to reconsider.  Understanding the market of the franchise you are looking to invest in is another key indicator of whether the franchise is good bet.  

What is the state of the current market?  Many times, franchisors provide those statistics, but don’t just rely on what they provide.  Their goal is to get you into their franchise, so be sure to do your own research as well.  Also, keep in mind, to not just look at where it sits currently.  It’ll probably be a year until you get your business up and running – so be sure to investigate projections as well.

Current Franchisee Feedback

This probably seems obvious but asking current franchise owners about their experience with the brand can give you a lot of insight of what your future could be like.  They have already gone through what you are seeking to do and then can give you a real glimpse into the day and the life.

Do the franchisees seem happy in their position?  Is the franchise in any active lawsuits with past owners?  All of these things are important to assess when deciding if the franchise is as good a good fit for you and future goals.

Decide What Makes Sense For You

It is important to understand that everyone’s “why” for wanting to own a franchise will vary.  However, there are some elements that do differentiate a good system from one that is needing some improvement.  Just like buying a house, entering into a franchise agreement should be approached with the same kind of caution and consideration process.

At Evergreen Franchise Advisors, we understand how important the decision is you are about to make when it comes to entering into franchise business ownership.  Whether you are a beginner or already have several businesses under your belt, we can help you navigate wherever you are in the process.