A franchise is the way to go if youÍre keen to start your own business but worry about your lack of experience. When you sign up with a good quality franchisor, you get the clout of an established brand name, marketing, training, systems and all the back-up and resources you need to get started.
While the majority of franchisors do the right thing, are straight and above board, there can still be a few predators out there. The fact is, not all franchise opportunities or agreements are made equal. Here are 10 signs of a killer franchise to help you choose.
1. The first thing to look for is a franchise with a proven concept, a track record of success. One such example is PoolWerx, the mobile pool maintenance network with a record of success dating back to 1990.
2. The next factor is a franchise offering a top quality product. A franchise is only as good as the product it sells or the service it provides. That is what keeps the customers coming back. So check customer feedback online by looking at blogs and old news clippings, and consider if the product is something you would buy yourself.
3. Another good indication is a well-known brand name, particularly if the brand becomes synonymous with the product or service in the mind of consumers. So if your friends talk of calling Fastway Couriers rather than just a courier service, then you know that the courier franchise is a winner.
4. A good product is essential but itÍs not much use if no-one wants to buy it. ThatÍs why you need a franchise with a vibrant market. A great example here is coffee. If you get a franchise from Gloria JeanÍs, for example, youÍre virtually guaranteed customers for the foreseeable future.
5. The market should also have growth prospects. For example, women make up an important consumer segment, so a franchise such as Fernwood, a leader in the womenÍs health club industry, looks like a keeper. So look out for trends in your industry of choice.
6. Next, your franchisor should provide great operational training in the mechanics of the franchise and general business training covering vital skills such as book keeping and marketing.
7. A top quality franchise provides excellent support. Asking other franchisees and checking forums is the best way to gauge this.
8. One clear sign that a franchise is a winner is the volume of happy customers so talk to other franchisees. Contact them in person or via online forums and blogs.
9. A great franchise comes with real estate and construction assistance, if appropriate. Location is often the key to franchise success so finding a site and negotiating a favourable lease are of crucial importance. Look for a total assistance package from your franchisor.
10. Finally a killer franchise company is one thatÍs financially healthy. You can investigate this by examining the audited financial statements in the Disclosure Document which franchisors must legally provide to potential franchisees.
Tony Melhem is an award-winning franchisee and director of the Franchise Council of Australia (FCA) and the inaugural chairman of the FCAÍs National Franchisee Forum. Contact tony@one4live.com or on 0419 889900.