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6 All-Important Features Top Franchise Businesses Possess

Guest post by: Cory Barber

Article Overview: With literally thousands of franchises in business today, you can quickly become mentally exhausted when researching which opportunity is the best. There is no “best franchise” out there that all franchise seekers should sign on for. Do you honestly believe that there is this line of people a mile long outside of Mcdonald’s franchise development office? Of course not. How come?

6 All-Important Features Top Franchise Businesses Possess

With literally thousands of franchises in business today, you can quickly become mentally exhausted when researching which opportunity is the best. There is no "best franchise" out there that all franchise seekers should sign on for. Do you honestly believe that there is this line of people a mile long outside of Mcdonald's franchise development office? Of course not. How come? The answer is rather obvious. What is best for you may not be best for me. Maybe you love the idea of managing 10 or 20 employees and would thoroughly enjoy the pride and prestige of franchising for the world's best known fast food brand. Someone else may have just been laid off after 20 years of service for a computer software company and now wants to pursue his dream of a franchise opportunity that is home based and requires zero employees. You see, it all depends on your unique values and interests. The product or service you offer should be secondary to the type of lifestyle your business will allow you and your specific role as a franchisee.

That being said, however, there are several essential features to look for when evaluating any franchise business. Here are the top six:

1. Stable industry. You need to be marketing something that will be profitable no matter the economy. One example is a disaster restoration franchise in which the franchisee organizes the clean-up process for businesses when fires or water damage occurs. As the franchisee, you are assured immediate payment by the insurance company to clean up the water damage or rebuild after a fire and those repairs need to happen immediately.

2. A necessary, recession-resistant product or service. Choose something that consumers either don't have time to do/make or despise doing and, thus, would rather pay someone else for. Stay away from fads, as they are unpredictable and don't provide longevity.

3. Market potential versus the competition. It's wise to choose a franchise that has little or no competition from other similar, established franchises. You wouldn't (and shouldn't) locate a Quiznos franchise within a block of two Subways that have been there for two years and are always crazy busy. Ideally, pick a franchise where your main competition comes from small mom and pop stores, which allow you to dominate and thrive.

4. The leader in it's category. A major contributor to your potential success a franchisee is teaming with a franchise in which they are the undisputed leader.

5. A dominant brand. Brand recognition is huge. Aamco = transmissions. Fantastic Sams = hair care. This is a major reason to franchise in the first place.

6. Growth Opportunities. Look for a franchise that encourages you to buy a 3-pack or a 5-pack. Or one that markets the rights to become an area developer or a master franchisee. These are strong indicators that the franchise is thriving and planning to expand and grow the business.

There are plenty of franchise businesses out there that provide the above key components. The tricky job is identifying and finding them. That's where an experienced franchise consultant with a vast inventory of various opportunities can be a valuable resource to you. I encourage you to call me for a free franchise discussion and together we can identify the best options for you and your situation.

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Article Tags: Franchise business, franchise businesses, franchise consultant, franchise opportunity, franchisee



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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