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Step #3 – Start Your Franchise Analysis

So let’s review for a minute. By now, you’ve:

  1. Started discussions with your family and decided that you might be interested in owning your own business, and
  2. Accumulated a nice list of opportunities to consider.
Now we’re on Step #3. The analysis phase. I recommend starting with an Excel spreadsheet, each franchise disclosure document (FDD) and an old-fashioned pen and paper. Your spreadsheet should include the following columns (and maybe more):
  • Company name
  • City of available territory (if not your current city)
  • Current number of open franchises
  • Franchise fee
  • Total initial investment
  • Total investment
  • Amount of cash you have available
  • Royalty fee
  • Advertising fee
  • Other standard fees
  • Lease fees (if necessary)
  • Legal fees
  • Potential salaries, overhead, etc
  • Equipment cost
  • Past litigation (if any)
This list is just the basics and will provide a good snapshot of the fees, time and other requirements to get started. 
Next we’ll look at taking a snapshot of the competition, market potential and other important factors. Feel free to contact me directly with any questions! 
About the Author: Jack Burris

Jack Burris is president of Red Beard Marketing, a marketing, business development and brand consulting company based in Charlotte, NC. RBM is a full service firm, and we also happen to have a lot of experience in the franchise vertical [...]