Do Your Research
Take your time to consider the pros and cons of owning a franchise. If you have committed to the idea of owning a franchise, you still need to pare down your potential investment by industry, concept, startup costs, and various other factors. Finding the right franchise for you can be an extremely personal process, but here are some handy things to keep in mind, regardless of the market:
- A Strong Reputation
Whether a franchise has 10 locations or 10,000, it’s important to align yourself with a brand that is positively regarded both locally and across public opinion. A good reputation can go a long way to provide built-in business when you first open your doors. As a wholly-owned subsidiary of the Procter & Gamble Company, Tide Cleaners is one of the most trusted names in cleaning, and the brand is backed by over 70 years of industry experience, serving as a prime example of a franchise with a glowing and well-earned reputation.
- Solid Financial Track Record
It’s worth researching a franchisor’s history of profitability, if they’ve managed to maintain financial strength, and where or why they have faltered.
- A Growing Market
Choose a market that is positioned for opportunity and growth for years to come. A hot and happening concept may be great in the short term, but franchisors with long-term focus and growth potential will provide you with a richer business experience. For example, dry cleaners are an essential business for Americans in big cities and small towns alike, providing ample and consistent business opportunities for franchise owners in markets across the country.
- Size Up the Competition
Many franchisors have already done the market research to find the ideal locations for their brand, but it’s equally important for you to do your own research. By getting a sense of what similar business concepts do well in certain areas, which others seem ill-positioned, and what neighborhoods are underserved by certain markets, you can focus in on the type of franchise that will work best in your community.