The franchise model can be attractive to many, and it does have its advantages. However, not all franchises are created equal, and choosing the right one is not always an easy choice.
Here’s how to know if a franchise is worth your time or not.
Some people might consider franchises because they like a particular business and its model. Others may choose to go from independent to a franchisee and go for the business’s most recognisable name. But there is a lot that should go into picking a particular franchise to represent, and you should take the time to look into each one in detail before you make your decision.
Look at the Growth
Ideally, you want a brand that shows steady growth. There are some cases when you can go for stability, but a rising franchise with excellent growth opportunity is usually your best bet.
Don’t take the company’s word at face value, however. Some will give some market figures to show growth potential, but you need to do your research. You also have to consider the opportunities where you are. Even if you join the best window cleaning franchise in the world, it won’t make that much of a difference if you’re in a small or oversaturated market.
Look at Unit Growth
Another thing you have to do is look at unit growth. This is the number of new franchisees that have joined over a certain period. One great thing about buying a franchise with a lot of locations or franchisees is that you’ll benefit from their brand recognition, which is one of the main reasons people decide to join a franchise in the first place.
However, it would be best if you didn’t look at franchise unit numbers only. You also have to know if the company is doing what it takes to prevent franchises from cannibalising themselves. For instance, companies that let anybody open a franchise with little consideration for geographical location essentially open the door to oversaturation. This is why you have to make sure that they have some cap on the number of franchisees that can occupy a particular area.
Look at the Management
A new franchise might seem attractive, especially when the original brand is well known and successful. However, while it’s one thing to run a successful location, it’s a whole other thing to run an entire franchise. So, you have to look at the management in detail and see who’s in charge. You want to know how long the company has been franchising, and speak with the franchisee support staff and management to know if you’re on the same page and how you can expect your relationship to be.
Check The Kind of Support They Offer
This is one of the most important things when choosing a franchise. The last thing you want is to pay an exorbitant fee to use their name only for them to go missing when you need them. You want to work with a team that will be with you every step of the way and help you with sales and marketing. You want them to help and be in tune with the latest marketing trends in the industry. You don’t want to pay advertising royalties on outdated methods that don’t get you any return, so be aware of that and make sure you research properly.
Confirm Franchisee Satisfaction
This one should give you a quick indication of whether a franchise is a good option or should be avoided at all costs. Franchisee sentiment is everything, and if a lot of them seem to be frustrated with head office, then it’s usually an indication that the franchise is not doing well. While the situation may be temporary, if you notice that nothing has changed in a while and franchisees still have the same complaints, it would be a better choice to look elsewhere.
If you want to know if a franchise could be a winner or not, ensure that you consider these factors. Ensure that you know the general opinion people have of it, how well it’s run, and how invested they’ll be in your success.