If you’ve been searching the internet looking for the best franchise to invest in, you probably have been inundated with claims stating, “Our franchise is the best!” Don’t be easily swayed by their flashy web sites, slick social media campaigns and persuasive claims. Here are three practical tips that will help you decide for yourself.
Determine your Objectives – If you haven’t already, set down in writing what it is you want to accomplish through owning a franchise. Do you want all aspects to be handled by the franchisor, such as marketing, lead generation, operations management and payroll? Or would you prefer more control over some aspects of your business? Not all franchises are created equal. Know what you want, and then use that list to vet out franchises.
Get the Facts – To know for sure, whether a franchise meets your objectives, you’ll need to get the facts. One source, provided by franchises, is a document called The Franchise Disclosure Document (FDD). This document outlines the franchise’s background, history, costs, marketing, training and much more. You will need to request this document as you engage with the franchise. Once you have it, you’ll be able to take a deeper look into the franchise. To help you understand the FDD, you can use the services of a franchise consultant.
Be a Customer – To really know if a franchise, whether offering a product or service, is the best for you. You’ll need to believe in what they are selling. By being a satisfied customer, you’ll quickly know whether the company is “best” for you. Sometimes this may be impractical, based on your location, but you’ll need to make a way for you to see what it’s like to be an end-user. Most franchises have some sort of opportunity to “test ride” their offering. You just need to ask them as you move through your discovery process.
Don’t be hasty or impetuous, buying a franchise is serious business. By using these tips, you’ll able to know which franchise is the best to invest in.