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Find an Enduring Franchise Opportunity

One of the greatest concerns for many potential franchise partners, aside from financing a franchise investment project, can be how to choose a franchise that will endure economic shifts rather than capsize.  The thought of instability can weigh on the minds of new franchisees.  Consider how franchisees can locate franchise concepts that will last the test of time.

Established Franchising = Potentially Less Risk

By opting to invest with brands that are established and experienced with what it takes to make franchise concepts successful, and that have multiple locations over a large area either regionally or nationally, franchisees can limit some of the risks that may come along with a business that is new to franchising.  Franchising a concept is hard work and success often comes with time.  Diversity of franchisees and locations can be a good indication of a resilient business model and concept.

Many businesses new to franchising are still learning from trial and error.  Of course even established brands learn a great many things in the realm of business savvy even years after entering the franchise sector and even businesses new to franchising can offer a stable and successful investment opportunity.  Nevertheless, new potential franchisees can minimize risks when they enter investment arrangements with brands that have established themselves in the franchise world, or at the very least offer a portfolio that indicates promise based on other factors that indicate the business is capable of franchising success.  These factors may include the fact that the owners of the business have experience franchising under another company name, or perhaps have experienced successfully running the business in relevant ways in various markets, thus adding to the reliability of the brand’s success if it is run by a new franchisee in alternative markets.

Research & Investigate (Even More)

Know the brand you are interested in, including how things are operated beyond the obvious.  By speaking to existing franchisees, both those in your region and those outside of it for the sake of balancing your sources due to their potential biases, you can expand on the image of the franchisor a great deal.  Be in expectation and remain unsurprised should you find both happy and unhappy franchisees, who offer varying views on the franchisor.  The goal isn’t to locate a few unhappy franchisees and call off all bets.  The goal is to make a balanced decision based on the information available to you through the shared commentary and to then consider your own situation, reflecting on how likely it is that you’ll wind up camping in the satisfied or disgruntled lot with time.  This conclusion is a personal one and potential franchisees must decide for themselves.   Yet speaking with existing franchisees is only one aspect of research.

By acquiring a disclosure document (either Federal Trade Commission (FTC) or Uniform Franchise Offering Circular (UFOC) formats) for those franchises under review as prospective investment opportunities, potential franchisees can find out more about any former franchisees who may have walked away from their agreement with the franchisor.  By reaching out to these individuals to discuss the circumstances surrounding this decision, research covers not only the existing franchisees but those who have since severed their ties with the franchisor.  The disclosure document enables potential franchisees to get an even more detailed view of how the franchise operation has developed with time and specific events that may indicate warning signs or valuable shifts that serve to strengthen the franchise.

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