If you’re an engaged franchise buyer, you’re probably becoming increasingly aware of all the things you need to do before you write The Check. There are lots of details!
I talk a lot about doing proper research on this franchise blog, as well as on some of the other blogs and websites I write franchise articles for.
Do Different Research
You need get in touch with several current and former franchisees of the chain you’re looking at, so you can get the real scoop. (It’s essential!) You also need to do some research on the actual franchise company; that is a little more difficult. If you’re really analytical, you can do some D&B research. I’m not sure how much you’ll learn by doing that, but, you never know. The point is this; do some digging into the franchise company, so you can sleep better at night. (I’m not suggesting that franchisors try to hide things about their internal operations. It’s just business.)
Dr. Callum Floyd is the leading franchise expert in New Zealand, and just wrote about the topic of franchisor research;
“The better companies have thought about all key business elements and functions and configured the business based on knowledge of what works -and what doesn’t. They understand customers, the value proposition to customers, how best to market and sell, how to fulfil operations efficiently whilst maintaining quality, implement relevant technology, provide necessary training and support systems, and so on.”
Please read Dr. Floy’d article.