You might be able to strike some franchise opportunities off
your list by a simple examination of the basic literature offered
by the franchiser. But what about those opportunities that have
yellow flags instead of red ones? If you're unsure about any
aspect of a franchise you're considering, you need to ask the
right questions before you can make a final decision.
Find out how well the franchiser evaluates its potential
franchisees. If the franchiser's growth is dependent in any way
on not properly vetting franchisees, you might want to look
elsewhere. Just one poor franchisee can damage the brand as a
whole and if the franchiser isn't vetting them, you may have more
than one bad apple in the mix already.
Ask a lot of questions about the in-place management team.
Management can make or break a franchise from the top down.
Research the background of every member of the management team.
Do they have franchise experience? Have they dealt with sudden
growth in a franchise before and what are they doing to support
rapid growth now? Get the answers to all these questions before
moving forward with the opportunity.
Research the franchiser's current system, including their
commitment to technology and staffing situation. The franchiser
must have a stable and reliable system in place to handle
franchisees and coordinate efforts, as well as enough staff to
handle the workload. If the franchiser experiences sudden growth
and can't support it, the outcome could be disastrous for the
Don't forget the all-important question about the exclusivity
of territory. If you can't get exclusive territory or the size is
small, you'll need to find out if you're working with the other
franchisees or competing against them. Decide whether the product
or service is in enough demand to sustain multiple locations
close together. Get literature from each franchise you're
considering to help you make your decision and make that decision
This article appears in: