Buying a franchise is often a good alternative to starting your own business. Franchisees can reap many of the same benefits of running their own business, while tapping into an established business model and customer-base. If you’re considering buying franchise, here are four things to look for.
Resilient business model
Consider the franchise’s product-market fit. Is the product or service in high demand? How does it provide value to consumers? Set yourself up for success by joining a franchise with a product or service that has a well-established, recession-proof market demand.
What makes this particular franchise better than all the others within the same industry? The franchise you choose should have a competitive advantage over competing businesses. 1-800-Radiator & A/C franchises, for instance, utilize a proprietary software system that allows them to maintain the highest quality inventory and have the necessary auto parts in stock when a customer calls. This software system also delivers real-time marketing and sales data, so franchisees know where to focus their marketing efforts to attract new customers and surpass the competition.
Strong success rate
Look at the franchise’s overall success rate. How many units have closed and why? To calculate the success rate, divide the amount of closures by the number of open franchise units.
Training and support
The leading franchise companies consider training paramount to success. Franchises have an established business model and need to train new franchisees on how that model works. Along with initial training, franchises should provide refresher courses and ongoing support to ensure your franchise unit is successful.