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Being frank about franchising

We’d like to answer a question recently asked of us by one of our community members.

How do I identify responsive and fair franchises? -Bill

If you’re determined to open a franchise, we recommend that you do two very important things:

Go into other locations of the franchise and look around. See how customers are responding. See how the management operates. Ask them if they like the business-entrepreneurs are often friendly to fellow entrepreneurs as long as you don’t pose a threat. This learning will be invaluable in getting an in-the-trenches perspective (instead of marketing language from ambitious franchisors).

Ask the franchisor about their long term plans for the brand, your region, growth opportunities, and acquire their FOC, a document that articulates all the stipulations of becoming a franchisee.

BONUS ANSWER! If you’re looking for significant growth in revenues, you’ll have to identify multiple locations. Perhaps one of the most interesting strategies we’ve learned-and we discuss this in our book, due out in a couple of weeks-and that is to not create a new location, but to acquire a tired, EXISTING location and infuse it with your energy, creativity and enthusiasm.

Anyone else have some tips on how to be smart about sizing up franchisee opportunities?

About the Author: Rich Sloan

Rich Sloan is chief startupologist and co-founder of StartupNation and host of StartupNation podcasts. He is also co-author of the acclaimed how-to book, StartupNation: America's Leading Entrepreneurial Experts Reveal the Secrets to Building a Blockbuster Business. Rich encourages you to [...]