What makes a good franchise? It`s a very difficult question to answer because every one is looking for something different in business. It`s like asking: "what makes a good husband/wife/child?". Depending on your expectations, you will give different answers.
However, I believe there are 3 key points that make a good franchise:
1/ The brand. It is probably the main reason why people will buy one franchise over another. Would you rather buy a Subway franchise or a Joe Moe Sub franchise? Yes, I knew it... The brand is really important because your customers have something to rely on, it`s safe, they know what to expect from you. The brand will give your customers the safety they need and it will also drive traffic to your franchise location. Think about it this way: some people don`t want to have a burger, they want to have McDonald`s.
2/ The support. To me, the pre opening and ongoing support are the most important things in a franchise. Yes you buy a franchise because you like the product and the brand but without any training, financing assistance, real estate location assistance and ongoing product development and support, you wouldn`t go to far by yourself... It`s really hard for a potential franchise buyer to know more about what type of support the franchisor offers even though the UFOC is supposed to describe it. I would recommend talking to as many current and past franchisees as you can. Ask questions, remember, there are no stupid question, only stupid answers...
3/ The franchisor`s experience. The length the franchisor has been in business is a very good indicator whether the franchise is a good one or not. If the franchisor has been in business for 20 years, he`s obviously doing something right....
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