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What is the best Franchise?

Written by: John Henning

Article Overview: As a Franchise Consultant I get asked all the time: "What is the best franchise?" The "best" franchise is relative to what business model fits you the best. I would love to tell you that every franchise is right for you, but that would not be true. First thing you need to do is figure out what business model you want to operate. Things like: - Do you want employees or not? - Retail, Wholesale, Mobile, Home or Office? - B2B or B2C? etc... No where in there was Brand name or $$ right? That is because those things should come after you decide what business model fits.

What is the best Franchise?

As a Franchise Consultant I get asked all the time: "What is the best franchise?" The "best" franchise is relative to what business model fits you the best.

I would love to tell you that every franchise is right for you, but that would not be true.

First thing you need to do is figure out what business model you want to operate.

Things like:

- Do you want employees or not?

- Retail, Wholesale, Mobile, Home or Office?

- B2B or B2C?

etc...

No where in there was Brand name or $ right? That is because those things should come after you decide what business model fits.

There are a few main things we recommend, first and foremost is doing your Due Diligence.

Proper Due Diligence can make the difference when it comes time to make your decision. Making a decision is hard enough but doing it based on what you read on the internet just isn't right. Also, don't do 3rd party Due Diligence, what I mean by this is friends & family & the news. Now I am not saying to totally discount what your friends & family have to say, however, make sure to do your own Due Diligence outside of what they tell you.

I don't know how many times I have heard someone tell me that their brother's uncle's best friends sister told them that the industry they were intersted in couldn't make money, they did the proper due diligence and here they are 2 years later making a ton of money doing what that 3rd party person told them they couldn't do.

So bottom line is, the "Best" Franchise is the one that fits what you are looking for in a business model. Be smart. Do your due diligence.

.

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Article Tags: amp, b2b, b2c, best friends, bottom line, brand name, brother, business model, franchise consultant, mobile home, money, nbsp, party person, proper due diligence, wholesale



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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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