Five Things to Look for when Considering a Good Franchise
Are you ready to embark on the journey we know as franchising? Similar to choosing a reliable company to provide care for your loved one, the opportunity to choose a franchisor to invest in is a significant decision that should not be taken lightly.
The franchise model has proven to be a successful investment for thousands of entrepreneurs in a vast array of industries. While many have excelled in this venture, it’s vital to dig deep and do your research to ensure it’s the perfect fit for your personal needs and business goals.
As someone who has been in your shoes, I’ve had to make the conscious effort to prioritize and research to make the most informed decision. Over the years, I’ve invested in franchise opportunities as a business owner and advised many colleagues on how to make educated and confident decisions about which brand to invest in. If you currently find yourself contemplating which company is the right one for you, keep in mind the below guidelines that will help narrow your search.
One of the first things I recommend looking at is the market opportunity of the product or service you’re thinking of investing in. Whether it’s entertainment, fitness or home services, the demand will always vary depending on the climate of the current economy. As an example, it’s a known fact that Baby Boomers are one of the largest generations that the United States has ever experienced. What does that mean for the senior care market? That the need for senior care continues to increase as over 10,000 people turn 65 each day. With these demographics rapidly shifting over the next 30 years, it’s safe to say that the senior care market is a strong industry to invest in right now.
This is where you need to determine where your priorities lie and what the most realistic option is for you. Ask yourself, is it more important to find a lower investment model with higher revenue potential? Or to find a higher investment model that may not have as much revenue potential but will generate a lot of revenue right when you open your doors? Once you have this question answered and narrowed down your options to a few brands that you’re drawn to, ask about the financial performance of existing franchisees. If their proven financial performance aligns with your priorities, continue to explore the brand.
Company Foundation & Support
The history and founding of a franchise company is an important aspect of every brand. The inspiration that sparked the business’s conception along with its current vision and mission are components that you should keep in mind while doing your research. Was the company founded to inspire change or was it founded because it was a hot concept to launch at the time? This may help you eliminate options based on your value.
Additionally, look at who’s running the business today. Who is the current management team at the franchisor level? Keep in mind that this is the team that will train you, deliver the franchising model to you and provide continuous support throughout the entire process. This is one area you don’t want to settle on.
When I meet with potential franchisees I like to make the joke that we are called Always Best Care for a reason, because we believe we are the best at what we do. As I believe that, I’m sure all our competitors feel the same about the services they offer. But opinions are different than facts, and you should be able to determine what sets a specific brand apart from its competitors. At Always Best Care, we offer three tiers of senior care (non-medical in home care, assisted living placement and home health), which we consider our differentiator. Every franchise concept within a similar category will bring something different to the table, but there will always be at least one thing that stands out to you and will separate one brand from the rest.
The Franchise System & Model
Last but not least, does the franchise opportunity you are considering have the system, model, vendor relationships and technology platforms for you to be successful in the industry? One of the best ways to compare one franchise opportunity to another is by looking at what operational advantages and strengths it has by way of its systems, platforms and business relationships. This can be discovered through validation with other franchise owners, which will allow you to determine the commitment of the franchise’s efforts to support your success.At Always Best Care, we say, “your success is our success,” and our focus is just that – the success of every franchise owner.
Jake Brown first joined Always Best Care Senior Services as COO in November 2010. Previously, he was SVP of Operations for Cartridge World, COO of Cartridge World Northern California and CEO of Cartridge World Hawaii. With more than 25 years of experience in franchise and dealer network businesses in six different industries, he has held various senior management positions with companies such as T-Mobile, ePhones, California Closets, Round Table Pizza and ComputerLand. He has the rare experience of having been a franchisee, a master franchisee and a corporate executive.
Getting Started Guide
Choosing a good franchise
The opportunity to choose a franchisor to invest in is a significant decision that should not be taken lightly