How to choose the right franchise for you

Choosing the right franchise for you can mean the difference between success and failure. Make an informed decision by asking yourself these nine questions before you commit.

1. Do they look good?

It’s critical that you are the best looking store in your category or, if you’re a mobile franchise, the vehicles should be well presented and serve as mobile billboards for the business. There is no substitute for first impressions.

2. Have they been able to secure prominent premises?

Franchise groups with a strong brand, well presented stores and a professional approach are generally able to secure the best sites. Better sites build a stronger profile in the marketplace and are therefore a more attractive proposition, provided of course that rents are manageable.

3. Are existing franchisees profitable?

There’s little point in a franchise group looking good but being only marginally profitable. Be sure that the business is maximising the profit that falls to the bottom line in both its company-owned and franchised locations.

4. Are existing franchisees happy?

The advocacy of franchise owners is one of the most powerful indicators that this is a franchisor of choice. What makes a franchisee smile? Good returns and a positive working relationship. You want a franchisor focused on ensuring franchisees are maximising the performance and profitability of their outlets.

5. Advertising, advertising and advertising

Many of the best franchisors maintain a high profile through their advertising and promotional activities. Franchisors of choice have ongoing and well-developed marketing campaigns that can include catalogue distribution, local area marketing, event sponsorship, radio or television advertising, or a combination of these.

6. Do they have a strong relationship with the banks?

Franchisors with aspirations for significant growth will generally have a good relationship with the banks which, in turn, are willing to offer attractive funding packages for franchisees.

7. Do they have company owned operations?

Company operated locations provide a valuable core of cash flow and profitability for the franchisor, which provides stability for the group. Company operations provide a ‘controlled’ environment for your induction and training that will contribute to your success.

8. Do they listen and learn?

Many of the ideas and innovations in a franchise network come from the franchisees at the customer end of the business. Has the franchisor used this wealth of knowledge and information to improve processes and create more value for the customer?

9. Do they have a clear vision and an aggressive growth plan?

Leading franchisors are continually articulating the direction and goals of their organisation and the progress of the business in one-on-one discussions. They encourage every stakeholder in their network to consider the opportunity and aspire to be part of the future prosperity of the business.