How to Choose a Franchise: Finding the Right Fit

Want to become a franchise owner but undecided about which franchise to invest in? View our guide on how to choose the right franchise that fits your budget and retirement goals, including what to look for in the best franchises for first-time owners.

Ask the Right Questions

To navigate this sea of options when figuring out how to choose a franchise, consider these essential questions to ask yourself and the franchisor. It’s meant to be a symbiotic relationship, so both parties should be on board with how the business will be run.

Questions for Yourself

Do a little bit of a self-assessment before you begin researching different franchise opportunities.

1. What are my interests and passions? Running a franchise can be demanding; loving what you do will keep you motivated during challenging times. Reflect on your interests and how they might translate into a business. Whether it's food, fitness, retail, or home services, your enthusiasm for the industry will be a key driver of success.
2. What are my investment limits? Understanding your financial capacity is crucial. Franchises come with varying initial investment requirements, ongoing fees, and financial projections. Assess your financial resources and determine how much you're willing to invest. Remember to account for living expenses during the startup phase when the business might not generate significant income.
3. What lifestyle am I seeking? Some franchises demand 24/7 commitment and physical presence, while others can be managed remotely or with flexible hours. Consider what balance you seek between work and personal life. Do you prefer a hands-on role or a managerial position overseeing operations? Your franchise choice should support the lifestyle you aspire to lead.
4. How much risk can I tolerate? When discerning how to choose a franchise, evaluate your risk tolerance and how it aligns with potential franchises. Some franchises have a proven track record across various markets, while others are newer with less predictable outcomes. Consider your comfort level with uncertainty and your financial cushion to handle potential setbacks.

Questions for Franchisors

Don’t be afraid to ask a franchisor questions. The same way they’re deciding if you’d be a good fit for them, you need to know if they’d be a good fit for you.

1. What support and training do you offer? One of the advantages of investing in a franchise is the support system. Inquire about the training programs, ongoing support, and resources the franchisor provides to ensure your success. This can include marketing assistance, staff training, operational software, and more. The quality and extent of support can significantly impact your business's growth and your satisfaction as a franchisee.
2. What are the financial performance expectations? Understanding the financial health and projections of the franchise is vital. Ask for detailed information on average revenues, costs, and profitability of existing franchises. While past performance is not a guarantee of future results, it can provide valuable insights into the overall financial health of the brand.
3. Can I speak with current franchisees? Interacting with current franchisees can offer an unfiltered view of the franchise operation, the franchisor-franchisee relationship, and the day-to-day challenges and rewards. You can typically find current franchisees’ contact information in Item 20 of the franchise disclosure document (FDD). Their experiences can help you set realistic expectations and determine if the franchise culture aligns with your values.
4. What are the terms of the franchise agreement? The franchise agreement is a critical document that outlines your and the franchisor’s rights and obligations, the term of the franchise, renewal options, and exit conditions. Review this document carefully, preferably with the assistance of an attorney experienced in franchise law. Pay special attention to territory rights, exclusivity clauses, and any restrictions on selling your franchise.
5. How does the franchisor handle innovation and competition? The business world is constantly evolving, and staying competitive requires innovation. Ask how the franchisor keeps the brand relevant and competitive in changing market conditions. This includes product or service innovation, marketing strategies, and technology adoption. Understanding the franchisor's vision for the future can help you decide if their approach matches your aspirations for growth and adaptation.

Get to Know AdvantaClean

Choosing the right franchise is a decision that requires thorough research, self-reflection, and careful consideration. By asking yourself these introspective questions and seeking detailed answers from franchisors, you can identify a franchise opportunity that fulfills your personal and professional aspirations, potentially leading to rewarding outcomes. Remember, the best franchise opportunity is one that resonates with your passions, meets your financial goals, fits your lifestyle, and aligns with your values and vision for the future.

AdvantaClean is a home services leader and in addition to the excellent services we provide our customers, our franchise owners enjoy extensive training, support, and more. To learn more about what AdvantaClean has to offer, inquire now.