5 Tips for Evaluating a Franchise Opportunity
When you start your search for the best franchise for you, there are several key facts to consider:
1. What industry am I passionate about?
When evaluating a franchise opportunity, think about what kind of work you are excited to do day in and day out. Starting a franchise is a huge commitment – in terms of financial, time and energy resources. You have to find an area that you are truly passionate about.
2. In what industry do I have expertise?
The market today is competitive as ever. If you have an are of expertise, so that you are not solely relying franchise opportunity at hand for their expertise and training, you will have a leg up over the competition.
3. What is your 5 and 10 year plan?
Your exit strategy will often times drive the franchise opportunity you choose. If you are looking to get into a business that you can build and sell with 2-5 years, you will have very different considerations than if you are looking for a business to inherit to your children. Be sure to keep in mind industry trends (both long and short terms) as well as payout multiples in various industries.
4. In the chosen industry, who are the best-known players?
A simple Google search of “INDUSTRY franchise opportunity” can help you get a quick list of the key players. Often times, the best-known brands will be sold out in your desired territory, so you may want to explore the newest players, with the best brand name as well.
5. Which company will best support me?
Different people have different support needs. Some want to a more hands-off approach with solid material available. Others want hands-on support with daily operations. Find a franchise opportunity that supports you in the way that will make you successful.