Franchising

The popularity of franchising has increased now that a proven method exists to align your financial expectations and business abilities with the appropriate franchise opportunity. This proven method for choosing the right franchise will help prospective franchisees save time, money, and frustration.  Simply put, franchising gives individuals the opportunity to go into business for themselves with an excellent chance of success at a minimum of risk.

This is the same method used by many of the large franchise consulting firms to find franchises for their clients that meet their goals, needs, and expectations.

Choosing which, if any, franchise to buy can be confusing, time-consuming, and a little overwhelming. But you can make the process a lot easier by carefully determining what you need to know and do and then conducting your investigation in an organized way. A decision based on a thorough, sound evaluation of your chosen franchising opportunity will make good financial sense and you will have the ability to match your personal and professional goals and abilities.

I recommend that you do your own franchise search rather than use the services of a franchise consultant. This way you can choose from the entire field of 3,500 franchise companies rather than being limited to just 100-200 that most consultants represent. You see, franchise consultants only have a small group of franchise companies that they work with, and they only get paid when you sign an agreement to purchase one from their inventory. The fees can be quite substantial and typically range from $10K to $20K so the consultant may not always have your best interest in mind.

Regardless of what they may tell you there is no secret or proprietary method of finding the "ideal" franchise for you. In fact, there are many franchises that may be a good fit for you but they may be far from "perfect." Some franchise consultants will tell you that their role is similar to that of a real estate agent, but the process of buying a house and buying a franchise is very different.

For most people buying a franchise will be the biggest investment, except for your home, that you will make in your lifetime, and will also be an enormous legal commitment. Running a franchise business will demand a huge amount of your time, money, and energy for the next several years, if not for the remainder of your working life. Because of the significance of your franchising decision, you need do everything in your power to be thoroughly informed about your franchise opportunity and your obligations as a franchisee.

Here is the proven method used by franchise consultants and franchisees to evaluate and select the right franchise:

1. Know yourself

2. Compare available franchise opportunities and their potential in your geographic market

3. Look at the companys' track record on training, marketing, and support

4. Understand the contract with respect to royalty fees, expenses, financing, contract renewal, and other commitments

5. Speak to a large number of existing franchisees as well as former franchisees to determine their level of satisfaction and the profitability of the franchise

Clearly, each person and each situation is a little different, so you should adjust these guidelines to fit your specific needs and objectives. The next article will include a step-by-step breakdown of the many details involved in analyzing yourself and the proven method to determine the best franchise for YOU. Keep in mind that the investigation, research, and due diligence process can take up to several months and should not be shortcut or rushed.  Part 1 of 5.