Skip to Content

Considering a Franchise? Be Sure to Compare Franchise Opportunities

Published on August 14, 2017

Share Tweet Share

Prospective franchisees need to find the best franchise opportunity that matches their business and financial profile. For this reason, it’s important for prospective franchisees to compare franchise opportunities to find the best investment options. The result is finding a franchise that meets their requirements and resources.

In order for a franchise candidate to do a thorough review of several franchise opportunities they need particular information, much of which is found in a Franchise Disclosure Document. Prospective franchisees need to compare several competitive franchises to understand which franchises are the most successful, have the executive experience to support franchisees and which franchises have strong, healthy unit economics.

Prospective franchisees need to be on the top of their game when it comes to investing their hard-earned money in a franchise. The Compare product in our Franchise Intelligence platform enables franchise investors both large and small to evaluate and make comparisons among various franchise opportunities. This resource is the most valuable franchise analysis tool in the franchise industry.

When comparing franchise systems a prospective franchisee should find answers to the following questions:

  • What does the franchisee receive for their initial franchise fee?
  • Is the franchisee territory truly exclusive or protected?
  • Are there any incentives to pay a reduced royalty fee by increasing revenues?
  • What is the advertising fund payment and how is it structured and administered?
  • What are the initial and renewal terms and what is the renewal fee?
  • Does the franchisor offer training and start-up support?
  • How many legal actions have been initiated by franchisees or by the franchisor?
  • How does the franchisor provide support to their franchisees on an on-going basis?
  • Are they up to date with current marketing and technology trends?

These questions need to be answered before you invest into a franchise system. Compare all of your investment options and you will Find The Best franchise system and ensure financial success.

About the Author: Ed Teixeira
Ed Teixeira is a recognized franchise expert with over 40 years’ experience in the franchise industry. He has served as a corporate executive for franchise firms in the retail, manufacturing, healthcare and technology industries and was a franchisee of a multi-million-dollar home healthcare franchise. Ed and Richard Chan are the authors of a new textbook, Franchising Strategies: The Entrepreneurs Guide to Success, to be published on July 1st by Routledge on July 1st. He has participated in the CEO Magazine Roundtable Meetings with business leaders from around the country and has spoken at a number of venues including the International Franchise Expo and Chinese Franchise Association in Shanghai, China. Over the course of his career, Ed has been involved with over 1,000 franchise locations and launched franchise concepts from existing business models. Ed can be contacted at [email protected].

Thinking about buying a franchise?
Not sure how much can you afford?

Fill out our Franchise Affordability Calculator

Related Articles

Franchising and Murphy’s Law

When it comes to franchising, Murphy’s Law comes into play more often than desired. In many cases, a new franchise takes off slower than anticipated.

Read More

Growing Your Franchise System Takes More Than Leads

The emphasis on franchise system growth is as old as franchising, having been accepted as the indicator of a quality franchise.

Read More

Franchisors Need to Avoid Wasting Their Franchisee Leads

When franchisors strategize their system growth, the major focus is placed on the amount and quality of their franchisee leads.

Read More

The Two Traits You Need in A New Hire

After owning 4 successful businesses, in different business sectors, there are two common attributes my good hires have shared; Curiosity and Tenacity.

Read More

Monitoring your Consumer Sentiment Is Key to Selling your Franchise

In the franchise industry, franchisors can view comparisons and relationships between consumer satisfaction for the products or services a franchise offers.

Read More

The TOP 4 Traits Of A Successful Franchise System

These traits lead to low franchisee turnover, an attractive investment opportunity, outlet growth and brand recognition and consumer satisfaction.

Read More

The #1 Reason You Are Scared to Open Your Own Business

Owning a business is hard. Each venture has its differences – different customers, different go-to-market strategies, different business partners.

Read More