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Select a Franchise Opportunity That Clicks!

Written by: Flo Schell

Article Overview: There are many ways to wisely examine a franchise opportunity. Smart prospective buyers conduct a thorough due diligence using the following statements as a guide. But in the end, it is the fit between the franchisee and franchisor that makes or breaks the deal. When the fit is in place, the sale is likely to go the distance. And when the parties click with one another, they are likely to find mutual success.

Select a Franchise Opportunity That Clicks!

There is no question that there are clear guidelines to consider when shopping for a franchise opportunity. There are personal guidelines for you to consider and there are certain elements you are looking for in the franchisor.

Your own personal checklist might look like this:

*I have enough money or can borrow enough money to meet upfront fees and ongoing fees for at least 18 months

*The day to day operations in this franchise are in sync with how I'd like to spend my time

*The day to day management responsibilites are harmonious with my strengths and talents and skills

*The person at the helm of the franchise opportunity is of strong reputation and likeability

*The culture of the organization is in harmony with my own values and style

*I believe that the future of this franchise opportunity combines vision and practicality

*The structure of the organization (public, private, or soon to go public) is one I find acceptable

*I know how many hours I'm willing to invest in the business and this number meets the franchisor's expectations

of course there is a checklist regarding the franchisor too:

*The franchisor is financially healthy

*The litigation history is acceptable and has been explained satisfactorily

*The organization has had consistent franchise growth

*The organization has a strong Franchise Owner's Association that works in concert with management

*Management shows an openness to new ideas

*Earnings Claims are available and satisfactory, or, if not available, franchisees are willing to help you to understand the financial picture

As part of your due diligence you should also:

*Review the organizaton's Uniform Offering Circular (UFOC)

*Interview a varied group of franchisees with a list of pre-designed questions

*Visit a local unit or two

*Visit the organization's headquarters and meet with key management

And while I fully acknowledge the necessity of researching carefully, at some point a decision needs to be made.

The decision, in my mind, comes down to The Magic Click!

*Does this opportunity feel like the right fit for me?

*Do I feel comfortable with the franchisees and management team?

*Can I see myself becoming a member of this franchise family? A leader within the organization?

*Can I see myself having fun with this businessA?

*Do I see a values and personality fit with the key players?

*Do I see myself growing with this organization?

*Are my instincts telling me this is the right organization for me?

For years, as VP of Sylvan Learning Systems, Inc, I put my head together with prospective franchisees that were examining the system for its solvency and future. My sales team and I answered question after question for prospective buyers.

And here's what I learned for sure: When it comes to making the final decision, it is really a matter of prospects' checking into their hearts and into their guts.

Because this is the way that most of us make big decisions at the end of the day.

The partnerhsip between the franchisee and franchisor needs to click.

And it needs to click for both parties.

When the click is there you know it.

When the click is there you have a good chance of solving problems together, getting over humps together, and being successful together.

Please give this good thought before you sign on the dotted line.

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