Confused by the advertisement based franchise information sites? This page helps you cut through the clutter and know the best sources of reliable franchise information for restaurants, fitness and even senior care franchise opportunities. This page will help guide you on the process of finding franchise information.
Successful business models can often be duplicated to recreate financial success in other locations. Multiple locations of a business helps build brand identity and can increase sales and revenue at all locations while lowering costs through bulk purchasing and combined marketing efforts. One popular method of replicating business models is through franchising.
Franchising is a term used to describe the process of purchasing the right to duplicate another business, typically with support from the original owners. http://www.investorwords.com/2078/franchise.html Some franchises may offer products, equipment or proprietary items that must be purchased from the main company, or the franchise may be merely foundation from which to grow. Some franchises are tightly connected to the corporate headquarters for management support and most aspects of short and long-term business operations, while others have a distant relationship after the initial setup is completed.
No matter if you are interested in a restaurant based franchise, a tutoring franchise location or a fitness franchise, you must learn how to find information on franchising fees, company information and market research to help you make an informed choice as to your franchise aspirations.
How to Find Franchise Professionals
This video from 2008 is presented by AllBusiness.com. A franchise attorney, Warren Lewis, discusses the type of professionals you may need to find in order to open your own franchise, including lawyers and consultants. He presents ways to find these types of professionals including Internet searches and contacting the franchise company for suggestions. He states you should ask for at least 5 references and check out the professional to ensure you are hiring a competent individual with actual franchise experience.
Step 1: Find Lists of Franchise Information
Rankings are often used to help distinguish between products and services. Several services provide rankings for Franchises based on criteria such as the type of franchise, the amount of investment required and the percentage of successful franchises. One of the most visible rankings can be found from ‘’Entrepreneur’’ magazine. Every year, ‘’Entrepreneur’’ publishes a list of top franchises divided into different categories. This list is a great place to start your franchise research as it provides a convenient place to discover the wide range of franchises offered. http://www.entrepreneur.com/franchises/rankings/franchise500-115608/2010,.html
The ‘’Entrepreneur’’ franchise listings are also available free online on their website. Typically, each franchise is listed in rank order both as an overall ranking of all franchise offerings, but also under subcategories based on the franchise characteristics. Each listing is linked to a more descriptive individual page for each franchise. Some franchise listing also provides a request mechanism that allows you to request additional information directly from the company.
Other franchise lists can be found through online sources, especially for individual types of franchises. Be wary of some information that is too promotional in nature as it may only be an advertising based website with biased rankings.
Step 2: Find Company Specific Franchise Information
Once you have narrowed down your franchise interest area by category, such as restaurants, food, education or fitness, you can look for company specific franchise information. Many sources of company information are available on the Internet and offline sources.
Websites The most direct method of finding company specific franchise information is by going to the business website. Often, a link is available on the home page that will direct you to a customized page full of franchise information. Look for this link on left menu selections, at the top of the home page, or in the bottom of the page in a row of links. You may have to select company, about us, or other company specific links before finding the franchising information link. Each company provides a different level of information online. Some provide a general overview, while some provide in-depth information on costs and support structure and even available franchise territories.
Request Information You can request a franchise information packet directly from the company. Check on their website for a ‘’request information’’ section, call the company headquarters, or send an e-mail to corporate ‘’contact us’’ link. If you encounter a form, be prepared to declare your financial status and interest area on the form.
Third Party Sources It is a good idea to research the company and franchise through 3rd party sources. Consider obtaining information from Dun & Bradstreet to assess the financial health of the company, review online reviews by customers from existing locations, and look at area resources offered by your local development board. http://www.dnb.com/us/ Consider checking out the complaint history with the Better Business Bureau. http://www.bbb.org/us/ You should analyze the market potential, the popularity of the chain and try to determine how long it would take to break even on your franchise investment.
Step 3: Find General Franchise Information
If you need to investigate general franchise information like financing options, marketing information and general business practices, there are many sources of information. One of the best resources for small businesses is the Small Business Administration. The SBA can assist with securing loans needed to help start a franchise, provide guides through their ACE program to help establish a business plan, devise marketing strategy and even help evaluate potential franchise opportunities.
Another source of general business and franchise information is your public library. Often libraries have a dedicated business section and may even have a business librarian that can help you locate helpful information sources.
For public companies, you can find annual reports, public filings and important public announcements in the EDGAR system run by the SEC (Securities and Exchange Commission). http://www.sec.gov/edgar.shtml You can also find general information on public and larger private companies on financial websites such as Yahoo Finance.
Overall, utilize multiple sources of financial information to help you locate potential franchise opportunities, analyze franchise offers and find critical business information that can help you build a strong franchise location.
Disclaimer
The content on this page is not a substitute for professional financial advice. Please consult a financial expert before taking any action suggested on this page.
