How to Choose a Franchise

Franchising abounds with opportunities. Which one is best for you?

To answer that question is to take a journey inward, because what path you take into the world of franchising depends in great measure on who you are and what you want to accomplish.

Here are five things to think about as you take that journey:

You will greatly enhance your chances of success selling products or services you understand. Don’t jump into something completely new and different; if you sell cars for a living, don’t buy a house-cleaning franchise.
Consider your strengths. Ditto your weaknesses. If you’re happiest when following orders, resist the idea that you can become a leader overnight, just by buying a franchise. On the other hand, if you insist on going your own way at every turn, how long will it take before you chafe at the follow-these-steps-if-you-want-to-succeed nature of the franchising industry?
Follow your passion – and step carefully. You need to be committed enough to your enterprise to make success your only option, but the enterprise itself must have the potential to succeed. You may love your collection of antique whale-oil lamps, but going into the whaling business won’t get you far.
It’s your money. Invest enough of it to keep you keenly aware of what’s at stake, but don’t throw everything you have at the venture. Be realistic about the costs of becoming a franchisee and buy a franchise that matches your resources.
Keep your antennas up while you do due diligence. Get good legal counsel, because you must understand the ties between you and your franchisor – legal, financial, and otherwise. In addition, learn everything you can learn about your franchisor’s record, and talk to every other franchisee you can track down. Above all, at every step of the way, ask yourself whether the people you meet – your franchisor, the people in the home office who will be your primary contacts, and other franchisees – conduct themselves as you would. This goes beyond mere compatibility; if you are to succeed as a franchisee, you must buy into the franchisor’s vision, but the character of the people you will work with must match up with your own.