How to Assess different Franchise Offers and Opportunities

There are so many different Franchises out there. How do you choose which one is the best for you? Here is a proven Franchise Analysis to help you along the way. As  Turnaround Specialists I recommend customizing your Franchise Assessment similar to this checklist.

Start with Developing a Detailed Franchise Analysis Checklist

Questions About the Franchise

• Has your attorney approved the franchise contract?


• What legal grey areas have been identified?


• Will you have exclusive territory?


• Does the franchiser work with any other franchise handling similar products and services?


• What are the Franchise Contract termination penalties?


• If you sell your franchise, will you be remunerated for goodwill?

Questions About the Franchiser

• Does the Franchiser provide a well thought out  Business Turnaround Plans?


• Have you determined the franchiser’s primary focus?


• How have franchisees in the past run into trouble?  Difficulties?


• What skills franchisees need most?


• How are conflicts resolved?


• Request the bios of Top Management.  Do they have entrepreneurial backgrounds?


• Do the franchiser’s earnings claims differ from their Franchiser Disclosure (FDD)?


• Has the Franchiser executed detailed due diligence on your qualifications?


• How many years has the Franchiser been operating?


• Does the franchiser have a reputation among the franchisees, competitors and business world for honesty, integrity, accountability and fair dealing?


• Has the franchiser shown you certified and audited financials on franchisees in your region and area which you can validate? 


• Will the franchiser provide good training programs for your key employees, executives and management?


• Does the franchiser furnish a strong Strategic Plan?


• Does the franchiser provide any Capital or Credit?


• What selling Programs and Training does the franchise offer?


• Will the franchiser assist with site location?


• Does the franchiser have adequate financial support to implement its Franchisee Plan?


• Does the Franchiser have a highly trained and experienced management team?


• What can the Franchiser bring to the table which you can’t adeptly do yourself?


• Has the franchiser complied with State Laws in the past?  What State Laws are in place regarding Franchise Sales?

Questions for the Franchisee

• Have you determined how much cash you will need to purchase the franchise and operate for an extended time? Have you determined the equity needed to operate the franchise until breakeven?


• Where will you get the Equity Capital?


• Are you prepared to give up some independence for the advantages offered by the Franchiser?


• Do you believe you have the qualifications to succeed as a franchisee?  What other Personnel resources can you provide?


• Are you prepared to spend a majority of your business life with this franchiser?

Questions About the Market

• Does an adequate market exist in your area?


• Will the market support the price level of the franchiser’s products and services?


• What are the population demographic trends for your territory over the next 5 years?


• What will be the demand for your product and service in 5 years?


• What is the non-franchise and related franchise competition in your territory and region?


• Will the Franchiser help you develop a Marketing Plan?

Examining Franchise Opportunities

• Figure out which franchises are growing the fastest and why.


• Research market growth possibilities.


• Consult Entrepreneur Magazine for its comprehensive Franchise 500 Listings.


• Utilize the U.S. Commerce Department’s Franchise Opportunity Handbook, which is published annually.


• Contact the International Franchise Association for assistance.

About The Article Writer – Frank Goley with ABC Business Consulting

Frank Goley has a diverse and varied experience base as a business consultant, business turnaround consultant, business plan expert, business plan writer, business coach, small business consultant, business planner, marketing consultant, online marketing consultant, seo consultant, and business plan consultant for ABC Business Consulting. Frank is considered an expert in writing, developing and implementing business plans, business turnaround plans, funding business plans, marketing plans, strategic plans and web marketing plans. Frank offers comprehensive business consulting, business coaching, business turnaround consulting, along with web seo, web development and web marketing consulting, to small and medium size companies. Frank is the author of Business Plan Book, The Comprehensive Business Plan Workbook – A Step by Step Guide to Effective Business Planning, and he has over 115 published articles and e-books on business success strategies. He also writes the Business Success Strategies Blog and publishes the Business Success Newsletter.