For business owners and entrepreneurs looking to get into franchising, there are many opportunities that promise to deliver a solid return on investment. While many of these are indeed good investment opportunities, it’s nice to be able to separate the wheat from the chaff.
Today, we take a look at a few common things to look for in a franchise opportunity. Here are 3 top questions to ask as you begin to do your own research on franchise businesses.
- What does the franchise think of you? It may sound initially appealing to have few barriers to entry, however, it’s important to remember that the end-game is to have a long-term business relationship. Look for franchises that are not just looking to fill units, but brands that are also truly invested in your success. Sadly, there are brands that will do whatever it takes to get the units filled, but after that…you’re on your own. Seek partners who regularly talk about supportive marketing materials, training specifics and the logistics of getting started. Plus, pay attention to the questions they ask of you—a great franchise partner will be interested in what you have to offer as their newest franchisee.
- What are other franchisees saying? One of the best indicators of a good investment opportunity is the sentiment of other investors. Talk to other franchise owners, and make it a point to seek those in nearby territories and others that are outside your region. What did they find most helpful? Were there any hurdles? Talking to owners in multiple areas will give you a good consensus on how the brand treats its franchisees as a whole, and what you might expect. A brand worth its salt will always have successful franchisees willing to share their stories. If they do not, it might be a sign to seek a different opportunity.
- What’s the brand personality? If you’re a first-time franchisee, now is a good time to do a deep introspective. As an investor, a franchise may sound like a great business opportunity, but it’s important to pick a brand that aligns with your goals for business outcomes. If your vision of being a franchise owner means being a big player with multiple locations on the national burger scene, that’s a very different business than franchising with the next-gen mobile-only coffee shop. Choosing the one that fits both your prerogative and your budget will be a key factor to your success. Look for a brand that can match your personal goals and one that feels right for the investment opportunity.
Regardless of your specific goals for franchising, one thing is sure: Do your homework! Look for organizations that see your success as an extension of their own. Seek partners who talk in terms of long-term relationships and are always willing to share past experiences. Most importantly, though, find a brand that aligns with your business goals and your personality as a business owner.
At Miami Grill, we care about all of these factors, and we’re always looking for entrepreneurs who do also. If you want to talk more about what it takes to run a successful franchise, let’s chat. Our franchise team would love to learn more about you.