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Franchise Information Sources

Guest post by: Jeff Elgin

Article Overview: There are many good sources of information about franchise opportunities. For most people, the process that makes the most sense is to first make sure you understand the business model of franchising. After you’re clear on what franchising is all about, then you can try to identify industry segments that may be of interest to you. Finally, you can research individual companies to see which ones match best with what you are looking for in a franchised business opportunity.

Franchise Information Sources

There are many good reference works and periodicals you can use to understand franchising in general and business format franchising specifically. The best sources to rapidly access this information at a very reasonable cost are: • A good bookstore

• The public library

• Internet web sites

The best way to scan industry segments to find ones that potentially have interest for you is to refer to lists compiled and organized by others. These lists usually contain information on many companies segmented by industry. One of the best organized is the Entrepreneur 500 (January issue each year). Spend some time looking at the investment level requirements and thinking about what the pros and cons of that particular industry might be. Make a list of the ones that you are qualified to pursue financially.

The final step is to research individual franchise companies. You will find that your best and easiest source of information is the franchise itself. Most franchise companies are set up to deliver the information you need to evaluate the opportunity. Make sure to carefully consider all the following sources:

• The initial package. Most franchisors have brochures, videos and web sites that will give you a good overview of the opportunity.

• The FDD. The standard disclosure document that all franchise companies have will provide you with information about the company history, the background of all key executives, costs and fees, obligations of the parties, litigation experience, success rate information, audited financial statements, earning's claims (optional), and a list of existing franchisees for you to contact.

• Existing franchisee calls. You should contact a number of the existing franchisees for any system you are interested in. You want to ask them about the training programs, the initial and ongoing support they have received, the effectiveness of the marketing programs they use, what purchasing power benefits they receive, and what the relationship with the franchisor is like. You will also want to confirm both the investment information and the earnings potential of the business during these calls.

• Meeting the franchisor. As a final step before selecting a franchise, it is always a good idea to personally meet the franchise staff you will be working directly with. Make sure you feel comfortable with their professional competence and with your ability to work with them in building a business together.

Once you have gathered all the information you need, make a decision and move on. Remember, don't compromise on your goals. When you find a franchise that's right for you, you'll know it.

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  Franchise information that is pertinent to your investigation is disclosed in the Uniform Franchise Offering Circular (UFOC).
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Article Tags: business, companies, FDD, Franchise, franchisor, opportunity



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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