What are the criteria for Selecting a Franchise?

 

WHAT ARE THE CRITERIA FOR SELECTING A FRANCHISE? Before buying any business, you must carefully consider many factors that are critical to your success: 

  COSTS                                                  YOUR ABILITIES  

  • How much money will this franchise cost before it becomes profitable? 
  • Can I afford to buy this franchise? 
  • Can I make enough money to make the investment worth my time and energy?  
  • Do you have the technical skills or experience to manage the franchise?  
  • Do you have the business skills to manage the franchise?  

  DEMAND                                          COMPETITION  

  • Is there enough demand in your area for the franchisor's products or services?  
  • Is the demand year-long or seasonal?  
  • Will the demand grow in the future?  
  • Does the product or service generate repeat business?  
  • How much competition do you have, including other franchisees?  
  • Are the competing companies/franchises well established? 
  • Do they offer the same products and services at the same or lower prices?  
  • Is there a speciality or niche you can capture?  

   BRAND NAME                               TRAINING & SUPPORT   

  • How well known is the franchise name? 
  • Does it have a reputation for quality? 
  • Have any consumers filed complaints with the local Better Business Bureau?  
  • What kind and how much training and support does the franchisor provide?  
  • Do existing franchisees find this level of training and support adequate?  

   FRANCHISORS EXPERIENCE             EXPANSION PLANS   

  • Has the franchisor been in business long enough to have established the type of business strength you are seeking?  
  • Is the franchisor planning to grow at a rate that is sustainable?   

 

NEXT STEPS 

The International Franchise Association has over 1,400 franchisor members, representing 100 unique business categories, listed on our site.  If you are considering whether or not to go into business for yourself, but not by yourself, we are confident that you will find a number of franchise systems that might be a good fit for you.  To begin your search, visit our franchise opportunties section - click here 

 

For more information on the franchising business model, click here  

 

 

 

 

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