What Criteria Should I Use When Evaluating a Franchise Opportunity?

Before purchasing a franchise, we recommend carefully considering the items in the eight categories below that will be critical to your success: 

COSTS

• How much money will this franchise cost before it becomes profitable? 
• Can I afford to buy this franchise? 
• Can I make enough money to make the investment worth my time and energy?  

DEMAND

• Is there enough demand in your area for the franchisor's products or services?  
• Is the demand year-long or seasonal?  
• Will the demand grow in the future?  
• Does the product or service generate repeat business?  

BRAND NAME

• How well known is the franchise name? 
• Does it have a reputation for quality? 
• Have any consumers filed complaints with the local Better Business Bureau?  

EXPERIENCE

•  Has the franchisor been in business long enough to have established the type of business strength you are seeking?  

YOUR ABILITIES

• Do you have the technical skills or experience to manage the franchise?  
• Do you have the business skills to manage the franchise?  

COMPETITION

• How much competition do you have, including other franchisees?  
• Are the competing companies/franchises well established? 
• Do they offer the same products and services at the same or lower prices?  

Is there a specialty or niche you can capture?  

TRAINING AND SUPPORT

• What kind and how much training and support does the franchisor provide? 
• Do existing franchisees find this level of training and support adequate?  

EXPANSION PLANS

• Is the franchisor planning to grow at a rate that is sustainable?