Compare Franchise Opportunities
You'll Be So Glad You Did!

Compare franchise opportunities and don't jump into the first "great" deal that comes along. We all know that...

...but it is soooo easy to get emotionally involved, and all excited, and forget to do what we know we should do.

Salesmen try very hard to make you feel that this has to be done today, right now or we are going to miss out on....We know that too...

So why do some people jump in too soon to franchise opportunities without doing the research?

So let's talk about Comparing Franchises:

One of the very best things to do before trying to evaluate franchise opportunities is to go to town and visit as many franchises as you can.

It may be a good idea to interview franchisees in some other town besides your own home town. If they realize that you are not going to be their competitor they may be more honest and helpful.

Take a list of questions to ask, and you'll find that your list of questions will grow, becoming more detailed and knowledgeable as you go.

Find out what franchisees like and dislike. What things they find hard, and what things made life easier for them. What they would look for, or beware of, if they were going to buy another franchise.

After that you’ll also want to listen to, or read the blogs of several franchisers themselves, and compare what they are saying.

Talk to your banker on franchising. Often banks have franchising specialists. Talk to your CPA. Talk to the local Small Businessman’s Association.

Business Week’s Practical Advice on comparing franchise opportunities says: “... the biggest mistake potential franchisees make is assuming that buying a franchise is a safer bet than opening up an independent small business of their own. 'People don't understand that a business isn't great because it's a franchise—it's great because it's great.'"

It’s true, just because there is less risk in opening a franchise that doesn’t mean every franchise is great and will bring in a terrific income. So that is one of the most important things to consider. "How much work will it require of me to make this franchise opportunity a success?" and "Am I willing to work that hard?"

When evaluating a franchise do not rely blindly on the information given you by the franchiser. Ask questions and look for evidence that the claims made are accurate. Go to current franchisees and ask them specifically what their sales were like their first month, and how much working capital did it actually take.

It’s so easy to be swayed by big potential dollar signs that franchisers dangle before your eyes…Yes, those numbers are very important to you and the health of your business… but there may other things just as important to consider.

Some of those things may be:

Do I like this type of business and how it operates?

Does it fit with my lifestyle and goals?

Is there much travel involved?

Is it in a good location? (ex: an automatic carwash)

How long has this franchise been in business?

The cost projections for a newer franchise may not be as reliable as those of older, more established businesses with a greater number of existing outlets to base their estimates on.

How successful has it been?

How much and how strong is the competition?

How does the public view this franchise?

Is there a strong market in my area for this?

How much is the initial investment and ongoing costs?

What are the conditions and restrictions in franchise agreement?

How long does this agreement run?

Can I renew it?

An excellent way to evaluate a franchise, or any small business, is to walk through

our business plan details list and begin a simple business plan notebook. It should be a place where you can document your goals, thoughts, questions, brainstorms, objectives, and compare how each franchise you are evaluating measures up to what you really want .