Are you considering purchasing a franchise? Not sure where to start on evaluating a franchisor and selecting the right franchise for you?
When you are selecting a franchise, it is important to select the right franchise for you. There is no such thing as the “perfect franchise”, what you are looking for is the “perfect franchise for me”.
The first step in selection is narrowing down the field. Get rid of the franchises which don’t have a solid business model, have poor franchise validation, or have some sort of internal or external threat that makes you leery of the business. Once you have a narrowed pool of viable investment opportunities, you need to do a personal inventory to understand which is the best for you. How much control do you want? Some fast food restaurants give their franchisees virtually no flexibility, whereas many shoe franchisors have very minimal guidelines, as examples. What are your passions? Find something that you are passionate about and do that. Do you want to have employees? There are a multitude of questions you can ask yourself, and each question should eliminate some of the possibilities in your pool.
How we can help
Our first step in helping you select the right franchise will be an interview. We will explore your goals, desires, long-term business plans, available human and financial capital, and interests or passions. If we then mutually decide that one of the several brands we represent in the retail and service sectors are right for you, we will help you to acquire one of those franchises. There is no cost to you for this service, but it is important that you remember, in this case, we represent the franchisor, not you.
If we decide that a franchise in our portfolio is not a good fit for you, we can represent you to help you find and vet another franchise. In this scenario, unlike most franchise brokers, we represent you, not the franchisor, and will work to truly help you find the right fit. We know how to critically evaluate a franchise brand. We do it before we take a franchisor on as a client, and we have done it several times when we bought our own franchises. Regardless of you have only a basic idea of what you are looking for, or if you have already narrowed the pool to one or two specific brands, we can help you dig beneath the surface and find out what you need to know before you buy. Once we have narrowed the brands that you are going to look at, we will help you evaluate each brand by assisting you in:
- Interviewing the franchisor
- Reviewing the FDD and franchise agreement
- Validate the model with existing franchisees
- Understanding the unit economics of the business
- Do an in-depth internet-chatter evaluation to unearth any lurking issues
- Evaluating the national competitive landscape
- Evaluating the local competitive landscape
- Helping you discover internal and external threats to the franchisor or business model