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How Do I Find the Perfect Franchise?

Written by: Ken Hollowell

Article Overview: In these economic times more people than ever are searching for a business opportunity that is perfect for them. Perfect enough to achieve financial independence and the freedom that comes with having enough money to afford a few luxuries in life.

How Do I Find the Perfect Franchise?

When shopping for the right franchise opportunity there are lots of things to be considered. Some obvious, some not. When looking for your perfect franchise some of that perfection is going to be what they see in you just as much as what you see in them. When discussing franchise opportunities with others I generally suggest they keep the following things in mind.

1. Your Current Financial Position

Few things could be more important when starting any business or franchise. How much money are you able to invest? Some franchises require little more than the investment of just a small franchise fee while others require franchise fees, real estate investments, inventory and other asset purchases, large staffs to hire, etc. The amount you have to invest will play a large role in what franchise most people choose.

2. Your Sustainable Financial Position

So you just invested all that money in your new franchise - now how long can you survive before you expect your new business to start paying you back. To some, a near immediate cash flow to live on is critical while others are able to wait months and even years before their investment is actually putting cash back into their pockets.

3. Your Desired Business Type and Model

You would probably be amazed at the number of happy and successful franchise owners who initially started looking at franchises thinking they wanted to own a fast food franchise yet after serious research ended up with something like a cleaning franchise! Everyone has certain industries they think they would love to work in and that's understandable, but I strongly advise everyone to keep any open mind there. Don't get your heart set on being the proud owner of a certain brand and end up forcing a square peg into a round hole while overlooking more realistic and feasible business opportunities. Absolutely seek something you think you will love doing, but keep an open mind as well.

4. Your Desired Geographical Location

Simply put - some franchises may be eager to open a new franchise in your desired area, while others may not. Some may already have too many franchises in your area while others may not be completely confident in your desired area's population or demographic. On the other hand some franchises may be foaming at the mouth for the opportunity to do business in your area. Consider using our free Franchise Match service to learn more about franchises that may be eagerly seeking your particular areas.



5. Your Experience

What have you done in the past and what are you good at? Or are you sick and tired of what you've been doing and ready to take on a whole new trade? Some franchises are looking for people with very specific sets of skills and experience while others actually prefer training them from scratch.

6. Your Role In The Business

Are you looking for a business that gives you a day to day job or are you simply looking for sound investments to that put others to work? Or both? Critical questions here as this will certainly vary from opportunity to opportunity. Some franchises demand that you own and operate your franchise while others allow you to be an absentee owner. This is also something a qualified franchise consultant can help you research.

7. Your Long Term Goals

Are you looking to own and operate this business for many years to come or just get it up and running then sell it to another investor? Do you see yourself owning one single franchise or do you have your sites set on owning several franchises across your state or region? Again - situations where some franchise opportunities fit in better than others.

These are just a FEW of the things you need to be considering when seeking your perfect franchise opportunity. Yes - use your heart - but use your head, your pencil, your calculator, your accountant, your attorney, your family - and any other resource you can to help make your decision.

Related Articles
  Finding a Franchise Online
  What is the Perfect Franchise Opportunity?
  Tips for Buying a Franchise
  Why are Franchises so Successful?
  Why are Franchises so Successful?

Article Tags: franchise consultant, ken hollowell, our business, profran consultants



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: SmartWoman seeks Fiesty Woman Writers - @shri: Perfect! Yes, I'd be interested! I will email you privately as you described and follow up. Goodie! Vicki


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