How to Determine the Best Franchises to Buy
Here are some of the ways we work with people to evaluate new franchise opportunities.
Start with your goals
When we work with people who are buying into a franchise, we want to know what you need the
franchise to do for you. Some of the things we talk about include:
• Financial security. Are you looking to replace your current income or grow your income
potential? Do you have aspirations of building a portfolio of businesses or are you focused on
maintaining a single franchise? The goal here is to match with a franchise that provides you
with the money you want to make and a commitment you can successfully manage.
• Lifestyle decisions. Owning a business can give you more flexibility for leisure time which can
be important in meeting family commitments. Do you want to be an owner-operator who
works Monday to Friday, or do you want to build a business with staff who will fill the hours
while you manage the operation?
• Territory preferences. Are you looking for the best franchise to buy that fits in your current
geographical area, or are you open to relocating? Some franchises have pre-set territories while
others create territories with each franchisee.
• Industry options. Are you attracted to a certain industry? Is there a strong future for growth?
There are always things about an industry that a potential franchisee hasn’t considered, and
that can often make a difference in the types of franchises they continue to pursue.
Understanding the financial commitment
The best franchise to buy is not always the one with the biggest revenue claim. Revenue is not profit.
Revenue is what you bring in; expenses are what you pay out, and profit is what you have left over. It is
important to have a very good understanding of how you will make money in the business.
You are prepared to put the money you have saved or borrowed into a venture that will provide for you
and your family today and into the future. In some cases, you will be trading in a salary to do this. You
want to be crystal clear what the anticipated return on your investment.
Knowing your strengths and weaknesses
Both seasoned business operators and new business owners have individual strengths and weaknesses.
You want a franchise system that will capitalize on your transferrable skills and help you in the areas
where you need some extra support or training. Franchise models are not all the same – some will cater
more to certain abilities than others. You want to choose a franchise that will help you build the skills
you might be lacking so you can be confident in running the business.
A great way to explore this is by speaking with current franchisees and finding out what their experience
has been with the brand. In our experience, there are some common situations that franchisees
encounter simply because they didn’t know what to expect. The more you know ahead of time, the
more information you have to make a good choice.
Getting introduced to franchise opportunities
There are some industry websites that dedicated to providing details on franchise opportunities. Some
of them include:
• BizBuySell - www.bizbuysell.com
• Franchise Business Review – www.franchisebusinessreview.com
• Entrepreneur Magazine Franchise Center - https://www.entrepreneur.com/franchises
• Franchise Gator – www.franchisegator.com
• Franchise Grade – www.franchisegrade.com
• Franchise Direct – www.franchisedirect.com
Be mindful that websites are one-way communication. They provide information about the franchise,
but not about how to determine if it is a good fit for you. A lot of our work with connecting potential
franchisees to the best franchise to buy is helping the understand how the business model functions in a
way that impacts finances, lifestyle and future aspirations.
The value of using The Franchise Consulting Company
The Franchise Consulting Company (FCC) is a group of experienced industry consultants who offer a free
advisory service for people who are interested in owning a franchise. Much like a realtor, our service is
paid for by the franchisor (seller) when we introduce them to you as an interested candidate.
Consultants are a resource for potential franchisees and you should use that service to your advantage
in making an ideal franchise match. Making the decision to grow your life by owning a franchise is a
considerable one to make so why not access every resource available to you?
Request a consultation with The Franchise Consulting Company today. Find out how we can help you
take the next steps forward in your franchise prospecting.
