The StartupNation Blog Trends, tips and real-life anecdotes from industry experts

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:

Article is continued below

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 [...]

Lineage2, Aion, Blade And Soul

StartupNation Free Launch Assessment! Get Started Now