There are many benefits to pursuing business ownership via franchising, but choosing the right opportunity is about more than just the business model. It’s also important to understand some key aspects of the franchisor of the brand you’re buying into!

Here are some key aspects to consider when thinking about which franchisor to invest in, and questions you should be asking.

Proven History and Business Model

The last thing you should worry about when looking at business opportunities is whether the franchisor is going to stand the test of time. Is the franchisor well capitalized? Do they have a proven track record of launching multiple franchisees into business? Buzz Franchise Brands, for instance, is celebrating our 10-year anniversary this year, illustrating that we’re a franchisor that’s here to stay. 

Additionally, consider if the business model is technology resistant. How will the business model stand up down the road? Will there still be a place for it in the market or is it just a fad? Remember that you’re making a significant investment into a business.

Executive Leadership Team

Consider the individuals that make up the leadership team of the franchisor. What does their collective experience look like? Do you align with their values and vision? These will be the individuals who will largely dictate the direction of the franchise for years to come, so it’s important to recognize what they see for the future of the brand. 

Strong Validation from Existing Franchisees

The best way to learn what it’s really like to own a franchise of the brand you’re considering is to talk with current franchise owners! Here are a few things to take note of as you talk with these fellow franchisees: 

• Are the current owners of the franchise happy with their decision to partner with the franchisor?

• Do they feel supported in their business?

• How often are they visited/supported by the corporate office? 

• Would they move down the path of business ownership with the franchisor again if they had to do it all over?

Understanding the franchisor/franchisee relationship from the current owner perspective will be key in your decision-making process.

Turnkey Systems and Processes

One of the biggest benefits of buying into a franchise is that you’re coming into a brand with existing processes, meaning you don’t have to figure out what payroll provider to use or which point of sale system to align with. Those systems are all pre-determined and you’ll be trained on how to use them. If there are certain systems or processes that you will be responsible for or have more flexibility on, be sure to understand what those are prior to deciding.

Ongoing Support and Operations

Getting a feel for the executive leadership team of the franchisor is important, but likely they’re not going to be your day-to-day contacts after you come on board. What does the ongoing support team look like? Is it customized to the needs of the franchisee or does the coaching feel like it’s a one size fits all model? Whether it’s marketing, operations or finance, be sure to have a strong understanding of how the support team is structured as these will be the individuals you’re going to work with on an ongoing basis.

To hear even more about what to consider in a franchisor, hear from Austin James, Director of Franchise Development, in this recent episode of What’s the Buzz on Franchising. After all, you can never be too thorough in your discovery process!

If you still have more questions or would like clarification on anything covered here, feel free to reach out at franchising@buzzfranchisebrands.com