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

  • 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?  

DEMAND

  • 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?  

BRAND NAME

  • 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?  

EXPERIENCE

•  Has the franchisor been in business long enough to have established the type of business strength you are seeking?  

YOUR ABILITIES

  • Do you have the technical skills or experience to manage the franchise?  
  • Do you have the business skills to manage the franchise?  

COMPETITION

  • 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 specialty or niche you can capture?  

TRAINING AND SUPPORT

  • What kind and how much training and support does the franchisor provide? 
  • Do existing franchisees find this level of training and support adequate?  

EXPANSION PLANS

• Is the franchisor planning to grow at a rate that is sustainable?