Selecting the right franchise for any individual or group is a very complex process and requires a great deal of research and planning to make a coreect and profitable selection of the right project. Such areas to explore are:
1. Focusing on an industry that relates to past experiences of the potential owner/s
2. Selecting a franchise that has exisiting franchisees
3. Contacting 5 to 10 franchisees to determine satisfication, profitability and franchisor support
4. Reveiwing all franchise documents
5. Determine franchisor support in selecting location of the potential franchise...location is very important in the success of most franchises
6. Ascertain market area for each franchisee and location of other franchisees in the specific market area
7. Understand the marketing and promotion support that will be provided by the franchisor and what is mandated for each franchisee
8. Review the initial and on-going training that is provided to the franchisee
9. Reveiw total cost of the franchise and necessary working capital that is needed for the first 12 to 18 months.
10. Develop a comprehensive action and business plan
Since the purchase of a franchise is complex, utilization of a franchise attorney, and a franchise consultant is very helpful in the process, and having a financial advisor review all of the financial plans can prevent many mistakes in the implementation of the business.