November 1st, 2023 | Franchising 101
For many aspiring entrepreneurs, the path to business ownership leads to franchising. It’s a compelling choice, given the proven business model and operational support that reputable franchisors provide. But not every franchise is a good investment. Some companies are better than others, and even a great opportunity might not be the right one for you.
Thoroughly researching the franchises you’re considering will not only provide you with insight into the way their business is run but will also help you find the franchise that best aligns with your values and goals.
Take Advantage of Online Resources
Once you have some idea of the types of businesses you’re interested in, start evaluating specific franchise brands. Look for franchisors with a solid track record. Assess franchisors’ financial stability and reputation.
International Franchise Association and the Entrepreneur Franchise 500 can provide you with information about the latest franchise opportunities, allowing you to focus your research on a particular industry, location, or price range.
Visit the websites of the franchises you’re interested in, both the consumer and the franchise side, to learn more about the company. Use the website’s contact form to reach out to a franchise consultant if you have questions.
You may also want to read customer reviews on websites like Yelp. While every company will have a few unhappy customers, an abundance of negative reviews could be a sign something is wrong with the way the business is run.
Meet Franchise Representatives Face to Face
Once you have exhausted online resources, it’s time to get out into the real world and meet face to face. One way to do this is by attending a franchise expo or trade show like the International Franchise Expo. You’ll have the chance to talk to representatives of dozens of different franchises from a myriad of industries. Some expos also offer seminars and workshops so you can learn more about the way franchising works.
Talk to current and former franchisees to find out how much support they receive from the franchisor, and if they are glad they decided to franchise with the company. If most of them have only negative things to say, it may be an indication you should find a different franchise to invest in.
Navigating Franchise Market Research
Beyond assessing individual franchisors, franchise market research should play a significant role in your decision-making process. It involves studying industry trends, consumer behavior, competition, and market demand. A thorough understanding of the broader market can help you make informed choices and identify opportunities for growth
Take Part in the Franchise’s Discovery Day
Discovery Day is the final chance for prospective franchises to learn about the franchisor. Whether virtual or in person, these events allow you to spend time with franchise executives and learn about their core values and the company’s culture. It also gives them a chance to see if you are the right candidate to help them grow their brand.
Scrutinize the Franchise Disclosure Document
The Franchise Disclosure Document (FDD) is a comprehensive document containing critical details about the franchise system, including financial statements, fees, and obligations.
Franchisors are legally required to give prospective franchisees a copy of their FDD at least two weeks before they sign a franchise agreement. If you’d like to look at it before this point, there are places you can find FDDs online.
If you have questions, hire an attorney with experience in franchising to help you understand both the FDD and the franchise agreement.
Start with a Reputable Brand with a Proven Track Record
When it comes to franchise research, aligning with a trusted brand is a strategic move. Home Franchise Concepts (HFC) boasts a legacy of successful franchising spanning over three decades. Our portfolio of brands offers franchisees ten different opportunities in the home services industry, catering to the diverse needs of consumers.
By partnering with HFC, you benefit from our unwavering commitment to franchisee support, proven business models, and a culture of excellence. We understand the importance of evaluating a franchise opportunity to make sure it’s the right one for you.
Contact us today to learn more about the opportunities available with our brands and see how we can help with the necessary franchise research so you can take the first step toward realizing your entrepreneurial dreams.