You have a lot of your net worth invested in your franchise. Beyond sales pitches and brand cache is a business. How does the franchisor's performance measure up to objective analysis? Shouldn't you understand the system you are helping to grow?
How do you know the franchise system you about to invest in is going to work out for you? The simple answer is you don't - and you won't know until you try.
However, there are some indicators of past success that can help you assess your odds, such as: the number of units that have closed or changed hands, or the number of SBA loans that have failed - data that reveals how past franchisees have fared relative to other concepts in the sector you are considering. We can help you complete your due diligence before selecting a franchise concept.
You are part of a successful franchise system. Are they doing the things necessary to keep pace with the competition? How are they adjusting their programs to meet the future needs of your business? Do you and your fellow franchisees have a common set of challenges and possible solutions? To answer these questions, you need objective, relevant information.
You know the franchise business and you are ready to grow. There are lots of options - within the same brand, in competing brands, or in entirely different sectors. Each option has its own pros and cons. The investment requirements and potential profitability are just the starting points to assessing the next unit investment.
Sometimes there are contractual constraints, like being prevented from expanding into a new territory or a competing brand. Some systems encourage multiple locations through area development or multi-unit agreements. Is the brand you are considering planning on sufficient expansion in your market to justify necessary franchisor service and product support? Having the tools to evaluate brands on a comparative basis and investigate particular issues and concerns would be smart business.