Seven Steps to Finding the Perfect Franchise

Finding your “Perfect-Fit”

Looking for a franchise? With so many options to choose from, how do you find the perfect fit? It’s a process—and you have to take each part seriously. Here are seven steps to consider when going through your search.

by Faizun Kamal

1. Work with a franchise consultant. Would you buy a house without using a Realtor? Would you make a bold career move without the help of an executive recruiter? Expert advice helps when you’re buying a franchise, too. Find a reputable franchise consulting company and choose a franchise consultant with whom you’re comfortable. This expert will help you hone in on specific goals, strengths, weaknesses, and clue you into opportunities that you might not have known exist. Even better: The service is free to you— the franchisor pays the consulting fee when the client is awarded a franchise.

2. Know yourself—well. Take an honest inventory of who you are. What are your skills and strengths? What are your weaknesses and blind spots? What comes naturally to you? What feels like pulling teeth? These are all good indicators of skills you do (and don’t) bring to the table. Different franchises require different strengths, and you need to understand how your skill set aligns with a specific franchise model.

3. Identify franchise models. There are more than 3,000 franchises in the United States alone. Some are home-based; others are brickand-mortar businesses. Some require hands-on management, while others absentee ownership. Using the personal assessment and customized business model built by your franchise consultant, you can start to narrow down options and see which companies might be a fit and which companies to cross off the list.

4. Begin due diligence. Here’s where your franchise consultant introduces you to a handful of franchises that may be a fit based on your personal, financial, and lifestyle goals. Each franchise will then introduce you to current franchisees in their system so you can start to get a granular feel for what it’s really like to run a particular business. You will be able to ask questions and understand what daily life at a company is really like. This is possibly the most invaluable part of your research.

5. Evaluate franchise documents. Each franchise will share with you what is known as the Franchise Disclosure Document (FDD). This legal document is comprised of 23 items, which give you a comprehensive overview of the financial state of the franchise, including any outstanding litigation against them and earning claims of existing franchisees. The Franchise Agreement lays out the responsibilities of each party—the franchisor, the franchise company, and you, the franchisee.

6. Attend Discovery Day. Most franchisors hold regular Discovery Days at their corporate headquarters. These are opportunities for a company to interview a potential candidate and see if he’s a good fit. You should also take this as an opportunity to learn more about the company and the team—your extended work family for years to come.

7. Become a franchisee. If you have done your research diligently and have attended Discovery Day, you are in a position to make a decision. Either you want to move forward into ownership, or you know why you don’t. The decision to move forward must sit comfortably on an emotional, business, and financial level. With the help of your franchise consultant, you should have found your “perfect fit” franchise.

Want to find out about franchises that may be the “perfect fit” for you? Email: faizun@thefranchiseconsultingcompany.com