A Pragmatic Approach to Franchise Research

It’s very common to start researching franchises by seeking information of specific concepts… We start with a Google search, then since we love coffee and hamburgers we think “Dunkin Donuts” or perhaps “McDonalds”. Why do we start here? Because it’s what we are familiar with… and while both of the above referenced models are very successful, it doesn’t mean they are right for you. Lots of Options There are thousands of different franchises available in the market. Almost every industry has a franchise model actively seeking motivated people to invest in their system. Some present the opportunity to work from home… an office… a retail store… almost anywhere. That’s the good news. The problem is that so many options can tend to create confusion. It begs the questions... What’s right for me? Where do I fit in? Where would I be happy? Therein lies the problem…. Fortunately, there’s a way to ferret through the labyrinth and determine if franchising is right for you, PLUS develop a more targeted approach to identify concepts that meet your criteria. Question one…. How much income do you need to support your lifestyle? Think of this question this way. If you left your current job or, were looking for a new job, what would you demand in salary? Seems pretty simple right? If I am leaving a secure position I want to be in an economic position that’s the same or better. While you might be willing to accept a slightly lower salary for fewer hours and or flexibility, you know what you need to make ends meat. The process in your franchise research is the same. If you are looking to buy a business, it must generate a certain income level within a defined time period. Before you start looking at specific opportunities, define your income requirements. What is a suitable investment level? There’s no sense researching concepts until you know what you can afford… While it can be helpful to understand the basic costs… I think we’re better suited to first know what we can actually afford to pay. Think of it this way, if you’ve ever purchased a home, chances are your first step was to get pre-approval for a loan. Once you figured out what you can afford, you look for houses in that range right? Your franchise research is a similar process, determine what you have, then target concepts within that price range. When do I want to open my business? It typically takes 30 to 90+ days to determine if a franchise concept is right for you. This is a guideline, not a rule. Take your time and don’t rush the process. I would add however, that it’s helpful to have an understanding of when you want to get started. This can help you line up your financial resources and establish an organized plan to get started. Owning a franchise can be a fun and exciting experience. It’s normal to want to seek new information. If you’re curious, by all means start looking at different concepts to get a feel for what’s out there. Focus on the types of businesses you like. The following questions might really help organize your approach. This can help save time, reduce frustration and help you target the right franchise concept for you.