The American dream is about owning your own business, but sometimes you need that extra support that franchises have to offer. Buying a franchise gives you the framework of the business model, along with the credibility and scale of the brand name, while also giving you the freedom to manage the business however you want. But what do you look for in buying a good franchise? Here’s a list of a few things we think are important to look for:
1. Market Opportunity
You should do your research on the market your business is targeting. Is there a hot market or high demand for this service? Look for the unusual—an in-demand niche market. It’s important when you start your business it’s in a market that is willing to buy your products or services.
2. Financial performance
The last thing you want is for your franchise to not make money. So, you’ll need to decide if you would rather have a lower investment model with higher revenue potential or to find a higher investment model that may not have as much revenue potential but will generate a lot of revenue right when you open your doors.
3. Company Foundation & Support
When searching for the right franchise you want to make sure that there is a value match. You want to have a good understanding of the current management team at the franchisor level, because this will be the team that will train you, deliver the franchising model to you and provides continuous support throughout the entire process. You don’t want to settle for a company that has conflicting values.4. Differentiator
This is your business and you want to find a franchise you are passionate about. Every franchise concept within a similar category has something different to bring to the table, but make sure to choose the one with at least one thing that stands out to you and distinguishes this brand from the rest.