How do you choose the right franchise partner?

Stephen Covey - 'begin with the end in mind' always rings in my ears when I hear anyone discussing if a franchise is right for them. Always start with the end goal. What does success look like? Once you've figured that out, then ask will this franchise enable me to achieve this goal - if yes do further research. if not consider other options - there are plenty out there.

For over 20 years I have helped people find their perfect franchise. Here is my system: - Map out basic skills, likes, dislikes and goals. - Outline financial resources - Do a deep dive into every area outlined so far, looking for details on management, sales, marketing and networking skills. Understand lifestyle goals and what the drivers are behind this move. Find your "Why" - Take all the criteria and create a model that outlines who you are, your skills, abilities and lifestyle goals and that becomes your guideline. - Look only for franchises where the model you just created fits the model of the owners of the franchises you may want to investigate. - Pick the top 3 and do deep dive investigations of them, setting preconceptions aside

You will first be attracted to franchises that you are a raving fan of. While this is a good criteria it is not the most important. As a business owner, you will want a business that a lot of other people are raving fans of! Market Research: Start by conducting thorough market research in the area where you plan to open the franchise. Look at demographic data, population trends, and economic indicators. Consider factors such as income levels, age distribution, and consumer behavior. Market Trends: Stay up-to-date with industry trends and changes in consumer preferences. What may be in high demand today may not be as popular in the future, so ensure the franchise concept is sustainable. And talk to existing franchisees for their input.

The FDD is a great core resource for researching and understanding franchise opportunities, I coach each of the candidates I guide through the franchise search and investigation process on how to approach the document. In short, I would dive into: The franchise agreement Item 3 - Litigation history Items 5,6 and 7 - The cost related sections Item 9 - The franchisees obligations Item 11 - The franchisors obligations Item 19 - Any earnings claim that may be included Of course, the whole document is important, but those are the sections most will want to review first. Additionally, you can reach out to an attorney for assistance, but make sure that they are a franchise attorney with experience.

The answer is simple in my opinion. I will reply from the franchisee perspective: Invest in a brand that you can validate if historical item 19 data exists. If emerging, invest if the brand's leadership has a history of success in the franchise industry. Regardless of legacy brand or emerging brand, invest in a brand that is in alignment with your goals and values. The company culture at the franchisor should be a culture you love being around.

Choosing the right franchise partner involves evaluating their experience, financial stability, and commitment to the business. Conduct thorough interviews, background checks, and seek references to make an informed decision.

Financial Stability - Ensure the buyer has financial capacity in not only purchase the franchise but also to run it successfully. Exit Strategy - discuss the buyer’s long term plan for the franchise. They must have a clear exit strategy in place, demonstrating a commitment to the business. Financing options - consider whether the buyer has secure financing for the purchase or they have a solid plan for obtaining the necessary funds. All these are crucial in ensuring the franchise that they purchase will grow and expand accordingly to the agreed timeline.

Looking from both franchisor and franchisee angles. Seek out the business mindset and relationship factor. With a long contract in hand, both parties must be able to communicate openly and effectively. And build a long lasting relationship, that requires trust and honesty. Think of it as working on a business marriage.

I would emphasise to ask for examples of their standard operating procedures, handbooks, onboarding and training. Also talk to a range of existing franchisees for their perspective.