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Finding a Franchise

Written by: Sebastien Page

Article Overview: There are a number of ways you can find and purchase franchises. Keep in mind that due diligence is necessary, and anything that sounds too good to be true probably is.

Finding a Franchise

There are a number of ways you can find and purchase franchises. Keep in mind that due diligence is necessary, and anything that sounds too good to be true probably is.
The ways in which you can locate and purchase franchises include:

Directly Through the Franchisor: As a general rule, franchisors list information on their websites or will send you an information packet per request.

Internet: When it comes to online franchise directories, there are nearly too many to count. Many of these lead generation sites offer additional features, including advice on franchising, franchise law, and financing. Be aware, though, that, due to the sheer volume of available information, you may have difficulty deciding where to begin your search for the ideal franchise opportunity.

Franchise Brokers and Consultants: Generally, brokers and consultants represent a select group of franchise companies; they often have a set criteria or code of ethics they require of the franchisors in their database. Several charge a fee to franchisees for their services, and others receive compensation from the franchisor once the deal is set. On the downside, your search for the perfect franchise might be limited to a broker's or consultant's database of approved franchise companies. On the upside, franchise brokers and consultants know the companies they represent very well, considering that they meet executives face-to-face, meet with existing franchisees of those companies and review Uniform Franchise Offering Circulars (UFOCs) and franchise offerings.

Trade Shows: Throughout the year, you're guaranteed to find a multitude of franchise trade shows you can attend. Such shows provide a great opportunity to find out about lots of different opportunities you may have been previously unaware of and, similarly, to research companies that you are interested in. Franchisor representatives generally attend these shows, thus allowing you a unique opportunity to glean an accurate assessment of whatever company you might be interested in.

Newspapers: While the classified section of your local newspaper may list available franchise opportunities, the majority of established franchise companies do not advertise in newspapers – which means it would be in your best interest not to limit your franchise search to newspapers alone.
Trade Publications: Prospective franchisees, spotlight opportunities, and list advertisements from franchisors are all targeted by trade publications such as print magazines, newsletters, and/or online journals and Web sites.

A final thought: franchise reselling is something you should be aware of when searching for a franchise opportunity. It's possible that an existing franchisee wants out of an agreement, or, a franchisor may be reselling a franchise because that franchise has gone belly up. Whatever your suspicions may be, try to track down the original franchisee to find out exactly what happened, because the opportunities you're checking out may in fact be legitimate – for example, a franchisee may have wanted out solely due to personal reasons completely unrelated to the performance of the business in question. Be sure to do your due diligence by thoroughly investigating the opportunity of interest (that is, verifying its legitimacy with the franchise company) and retaining a franchise attorney to protect your rights and interests.

Related Articles
  Steps to a Successful Franchise Experience
  Franchising with all its Success
  Why Franchisees Should Consider Using a Franchise Broker
  Be in Business for yourself, but not by yourself
  Top tips for franchise success

Article Tags: accurate assessment, circulars, code of ethics, downside, due diligence, franchise brokers, franchise companies, franchise directories, franchise law, franchise opportunity, franchise trade, franchisees, franchises, franchisor, information packet, lead generation, multitude, select group, sheer volume, uniform franchise



Related Forum Posts
Re: Enticing Franchises - Top 9 List - All Franchise listed above are in millions of dollars. Do you have the list of Franchise in thousands
Re: Info for would be franchisers... - [quote="Sebastien":1d29sdv1]Like Franchise Times, Franchise Update is a very practical magazine. There is no blah blah, just straight facts that anyone in the franchise community can relate to. I just want to mention that all these magazines are NOT franchisee oriented. I mean these magazines are for franchise professionals. If you're looking to buy a franchise, you won't find much information in there. To answer your question, getting published in Franchise Times was fairly easy. I don't want to brag too much but I think I am known in the franchise industry. I was the marketing guy at Franchise.com for a few years before joining my new company, the World Franchising Network. So people know me and I have a very good relationship with Nancy Weingartner, the Managing Editor at Franchise Times. I was talking with her at the last Franchise Expo South in Miami and she mentioned she'd like me to be profiled. I was like "ok, sure!". I like this franchise executive profile thing in Franchise Times as it is rarely BS. People are usually really natural in there.[/quote:1d29sdv1] Thanks for the follow up Sebastien! And I can't say that I'm surprised that networking with the right people and managing your relationships with them properly are the keys to being published. I guess the old adage holds true of "it's not who you know, but who knows you" that's important.
how much for a franchise fee? - Dear Colleague There is no easy answer to this question. Things to consider: [list=] The sizeof the Franchise Clent base Expected Turnover Intellectual Property costs (recoup) Number of Franchises Number of employees Original Set up costs Franchise admin costs An example: A franchise that I was involved in setting was to a simple "lawn mowing/home repair" franchise. The Franchise included national/local advertising - preparation of client lists - general admin - central accounting etc The Franchise involved 300-500 clients - and an annual turnover of about $300,000 . The annual franchise fee was $30,000. Hope that this gives you some idea Take care Ian[/list]
Re: Franchise Surveys - Another good tool to researching a franchise is to speak with their existing franchisees. This contact information is included in most Franchise Disclosure Documents. In order to get a Franchise Disclosure Document or FDD as it is often referred to, you will have to complete a basic franchise application. The franchisor will then usually provide you with the FDD at that time. Included in that book of information is a list of the existing franchisees, the contract, the investment information etc... This information is required by Federal Law to be disclosed to your prior to making a purchase. So be sure to do your research and start with the Franchise Documents to get the initial information.
Re: Info for would be franchisers... - [quote="Sebastien":2gam0klq][quote="BuzzAroundBooks":2gam0klq]Like Franchise Times, Franchise Update is a very practical magazine. There is no blah blah, just straight facts that anyone in the franchise community can relate to.[/quote:2gam0klq][/quote:2gam0klq] That is really what I look for in any industry publication. We lead busy lives and when people fill their magazines with fluff, not only does it benefit no one, but it makes us truly appreciate those that don't. Thanks!


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