The answer is one that most people don’t like, “Well, it depends.” What may be a good franchise good for your brother Joe may not be good for you. You may have different requirements, different dreams and different goals than your brother Joe.
So, how do you find the “best” franchise for you? Most of our clients ask this question:
What is a good franchise that I enjoy, and that will work well in my market and for my life?
When I Googled, what is the hottest franchise, my search returned a lot of companies advertising all sorts of brands. It was more gloss than substance. You want to move beyond the gloss and ask these six questions:
- How much does it really cost?
- Will it work in my market?
- Can I still have the lifestyle I want?
- How much money will it make and when can I start making it?
- What type of support will I get?
- How stable is the franchise for long term growth and development?
Where Do You Start
To find a good franchise that works will in your market and for your life, start with yourself. Write down the pros and cons of your last three jobs. This will give you an idea of what you like. Ask friends and family to help you understand your strengths and weaknesses. You can also use our free business assessment to learn more.
Visit with a good financial advisor, banker or 401K rollover specialist. Learn what your options are for funding your new business. It is always best to put together a plan of both your personal and business financial goals. You want to be able to afford the business, as well as pay your personal bills, as the franchise starts to build and grow.
Your Market Area
Use data to understand your market better. A good resource is www.citydata.com. Notice the salaries in the area and the distribution of commercial versus residential. Notice the average age of the residents in your area.
Does your family support your decision to buy a franchise? Most everyone has bought a house or car. Buying this kind of business is a much bigger decision even though franchises are highly successful. Your family needs to be involved and support you. Ask these three questions.
- If we buy a business, will you support me?
- What type of support will we give one another to make this new business work?
- Who will do what if a family member wants to be actively involved in the business?
- And, finally, do you all agree on the overall budget for the business? Do your homework on funding.
Learn to Involve Subject Matter Experts (SME)
Are you an “Unconscious Incompetent?” Do you know what you don’t know? This is where SMEs can be handy.
Your SMEs should be a good franchise coach, accountant, franchise attorney and banker. Do your due diligence on the business. (Investigate the business long before you write a check)
There is a lot to due diligence. But speaking with the other franchisees (owners) in the franchise system is where you will uncover a wealth of good solid information including true earnings, challenges and rewards of owning this business.
“Other factors to consider when deciding on a franchise: how long locations have been open, net
location openings in any given year; and growth potential of the concept’s given industry. Finally,
investors should talk to established franchisees in the system.” The Street
What is the hottest franchise? It is one that fits you, one you can afford and one in which you have completed your due diligence.
Right Franchising helps our clients with finding the right franchise for them and then we provide all the tools to help them complete a thorough due diligence on the franchise. We prevent costly mistakes. And, most importantly, we help our clients make well-informed decisions.