In evaluating whether a franchise is a solid investment or not, there are many criteria to evaluate.
- The track record of the business and its owners/executives
- The financial stability of the company.
- How many head office owned franchises does the franchisor own? Beware if there are too few or none. Income generated from HQ owned franchise is a necessary contributor to fund ongoing costs in the franchisor’s business.
- How the franchisors support their franchisees?
- The public’s perception of the brand.
- The quality and reach of the marketing activities undertaken by the franchisor.
- Is the franchise a member of FASA?