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How Can You Possibly Know How To Research A Franchise?

confused on how to research a franchise
It’s really easy to get confused after looking at several different franchise opportunities.

It can be tough to remember things like:

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  • The amount of the franchise fee
  • Total investment
  • The number of up and running franchise businesses
  • The number of franchisees
  • Territory availability
  • Past or current litigation
  • Time to break-even
  • Franchisee earnings

It’s a lot to remember. Especially if you’re investigating 3 or 4 franchise opportunities at once. They can start blending together. Unless you know what you’re doing. And if you’ve never looked at buying a franchise

How can you know what you’re doing?

How can you possibly know how to research a franchise…considering you probably haven’t ever done it?

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Did you know how to research your first new car purchase?

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(Or did someone have to show you how to do it?)

How about your first house? Did you know how to buy a house?

Anything that’s considered a major purchase needs to be thoroughly researched before money changes hands these days. One has to get educated before they write a check and/or take out a small business loan.

If you’re thinking of buying a franchise, how much do you really know about franchising?

For example, did you know that the Federal Trade Commission (FTC) requires all franchise companies that are registered in the United States to have a document called the Franchise Disclosure Document? (FDD) And, that this document lists 23 specific items pertaining to the business?

The FTC just updated their “Consumer’s Guide To Franchising.” It’s worth the read. Here


How Can You Possibly Know How To Research A Franchise?

Most people don’t take the time to learn all they can about the wonderful business model of franchising.

How sad!

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The franchise model-if leveraged properly, can be so good! The possibilities are endless.

But, you need to know what you’re doing.

You need to learn all you can about franchising.

You need to:

  • Learn the basics of the franchise model
  • Find out if you’re a good candidate for franchise ownership
  • Learn about the pros and cons of owning a franchise
  • Find out about certain franchise “myths
  • Learn the money part of franchising

And, you need to learn about these things before you learn how to do proper franchise research.

Would you like to learn more about franchising?

Photo credit: Ben+Sam via / CC BY-SA

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I'm The Franchise King®, Joel Libava. I help prospective franchise owners avoid bank account emptying mistakes. For over 20 years, I’ve been helping people make smart, informed decisions on franchises to buy, and I can help you, too! #thefranchiseking
The fantastic thing about Joel is his neutrality. Because he is not getting an incentive fee, he will always give you the advice that you need (even if not what you necessarily want) and that's pretty unique these days. Thank you Joel!"
- Nic Church, France
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