How to Spot a Great Franchise Opportunity

As a franchise public relations firm we have had the opportunity to work with some truly fantastic franchises and anticipate being able to work with many more.  We've had multiple friends ask us about the franchise industry and how it works.  Getting into a franchise opportunity can easily be a fantastic business idea, but how do you spot the a great franchise opportunity?  There are a couple signs that you've found yourself a great franchise opportunity, which include the following:

1- Earning potential is there: When you're trying to figure out if the franchise opportunity you have found is a good one you must evaluate what kind of earning potential is really there.  Can you make a decent living from the franchise?  Ask yourself what kind of money you truly need and want to make, then determine what the potential is from your franchise opportunity.  You will need to estimate the potential earnings.  Some franchisors make this type of information public and publish this kind of information in a document (Franchise Disclosure Document/FDD).  If not you may want to speak with other franchisees about the earning potential.

2- Satisfied franchisees:  If you decided to speak with other franchisees regarding the earning potential you might as well ask how satisfied they are with the franchise.  Meet and discuss with them to get their honest opinions on the franchise.  You may also want to find and speak with ex-franchisees as well.  Get as well-rounded of an opinion as possible.  If you find that a good portion of franchisees that you've spoken with are pleased with the franchise then you may have a great franchise opportunity on your hands.

3- Strong support system from franchisor: Does the franchise opportunity you have found offer any kind of training or support?  Support from the franchisor is important and really, quite crucial at the start up stage.  When you're trying to get your franchise up and running it will become important to have the training and support from the franchisor, especially to help your franchise grow.

4- Overall growth: If you are looking to become involved with any franchise you must see some sort of company growth otherwise what's the point, right?  Ongoing growth in the number of franchise units is a good indication that the franchise itself is growing and obviously you want to be apart of a franchise that is growing.  Seek information about the type of industry that the franchise is in as well to help form an opinion.

5- The fit: While all of the above criteria will be crucial when deciding on whether a franchise opportunity is good or not, the most important is how the franchise fits or connects with you.  If you don't feel that the franchise is a good fit for you then the earning potential, satisfied franchisees, support from the franchisor, and overall growth won't mean much to you.  Really consider what the franchise is all about and how that fits with you and your core values and interests.

Looking for more tips on how to spot a great franchise opportunity?  Feel free to leave us a comment or contact us.