When researching (franchise concepts to purchase there exist many resources of valuable information that you can turn to. Listed below are a few such sources of what can ultimately be priceless franchise information for you to behold in your franchise search.
Web Research – Most potential franchisees begin their search right from their own computer. The value of the internet really comes in initially being able to narrow down exact franchises that are best for you. Ideally, you should expect to select no less than 6-10 franchises in which to primarily investigate and evaluate.
Consultants – Franchise consultants can be a great resource of information and help with particular franchise concepts. Not only can they help you get a foothold in becoming a successful franchisee (of a respective system), but they can more importantly identify, from the onset, franchise concepts that likely won’t “fit” your exact investment profile.
UFOC – A look into a franchise concept’s Uniform Franchise Offering Circular (UFOC) gives valuable insight and statistics into each particular franchises history and financial system. It is often encouraged to have both a legal counsel and a franchise accountant take a look at the UFOC once you have narrowed down your franchise choices.
Market Research – Surprising to some, there is usually a franchise system that is a “better fit” for you than any that you initially might be aware of. While it helps to have a background in the field of the franchise concept you are interested in, it is by no means necessary. Simply, research, research, research, and find that “best fit” or “better fit” franchise for you, regardless of what industry the franchise is in.
Franchisees – Time and again, we hear that franchisees are the single most valuable source of information when you are interested in buying any particular franchise. A quick tip – try and locate a franchisee in the system you are interested in that is not an area rep. Part of the area developer franchisees success comes in “selling” more franchises for the system; understandably, their information might simply be more of a sales pitch.
Management – Simply, be comfortable with the management. Franchisors also want those individuals “best fit” for their respective system. Ask the hard questions, and always address any and all uncertainties you might have and as quickly as possible.
Others (vendors, competition, etc.) – Lastly, vendors, local media, and even customers can be a great source of unique insight into any particular franchise. Always ask for positive and negative feedback about how the respective party relates to / interacts with the franchise system at hand.
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