{"id":10979,"date":"2014-01-06T21:28:33","date_gmt":"2014-01-06T21:28:33","guid":{"rendered":"https:\/\/www.thefranchiseking.com\/?page_id=10979"},"modified":"2022-10-13T14:02:16","modified_gmt":"2022-10-13T18:02:16","slug":"how-to-research-a-franchise","status":"publish","type":"page","link":"https:\/\/www.thefranchiseking.com\/how-to-research-a-franchise","title":{"rendered":"How To Research A Franchise"},"content":{"rendered":"<p><a href=\"https:\/\/www.thefranchiseking.com\/wp-content\/uploads\/how-to-do-subway-franchise-research.jpeg\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.thefranchiseking.com\/wp-content\/uploads\/how-to-do-subway-franchise-research-620x413.jpeg\" alt=\"how to research a franchise\" width=\"620\" height=\"413\"><\/a><\/p>\n<p><strong>Here&#8217;s how to conduct franchising research for the franchise businesses you&#8217;re thinking about buying:<\/strong><\/p>\n<p>A. Thoroughly<\/p>\n<p>B. Carefully<\/p>\n<p>I&#8217;ll go into more detail in a minute.<\/p>\n<p><\/p>\n<h2>Franchising Is A Powerful Business Model<\/h2>\n<p>The franchise business model, if leveraged properly, is amazing&#8230; and powerful. As a matter of fact, it&#8217;s been called the best business model ever invented. But if you end up choosing the wrong franchise, and you blow through all your money because you didn&#8217;t do the type of research needed to get all the facts, then owning &#8220;<em>The best business model ever invented<\/em>&#8221; won&#8217;t much matter.<\/p>\n<p>But sadly, most people who are thinking about entering the franchise industry <em>don&#8217;t<\/em> know how to do franchise research. <strong>Real<\/strong> franchise research.<\/p>\n<p>In reality, a lot of them aren&#8217;t doing even the most basic things when looking into a franchise brand.<\/p>\n<p><strong>Like:<\/strong><\/p>\n<ul>\n<li>Using Google (<em>and other free online resources<\/em>) to get franchise industry background information on franchisors-including the executives<\/li>\n<li>Doing market research on franchises<\/li>\n<li>Talking to <em>and<\/em> visiting existing franchisees<\/li>\n<li>Working with small business accountants<\/li>\n<li>Hiring franchise attorneys<\/li>\n<\/ul>\n<h2>&nbsp;<\/h2>\n<h2>Franchise Businesses Are Big Investments<\/h2>\n<p>All investments carry risk&#8230;franchises included.<\/p>\n<p>Without exception, if you&#8217;re thinking about <a href=\"https:\/\/www.sba.gov\/blog\/how-get-past-fear-buying-franchise\" target=\"_blank\" rel=\"noopener\"><b>buying a franchise<\/b><\/a>, and you want to <em>lower<\/em> your financial risk, there are 3 ways to do it.<\/p>\n<ol>\n<li>Only buy a franchise you can easily afford<\/li>\n<li>Choose the right franchise for you-and your geographical area<\/li>\n<li>Do thorough franchising research<\/li>\n<\/ol>\n<p>Let&#8217;s talk about #3.<\/p>\n<p>&nbsp;<\/p>\n<h2>Your Franchise Research<\/h2>\n<p>Research. It&#8217;s <a title=\"buying\" href=\"https:\/\/www.thefranchiseking.com\/most-important-part-of-buying-a-franchise\"><strong>the most important part<\/strong> <\/a>of buying a profitable franchise.<\/p>\n<p>That said, if you&#8217;ve never researched franchise opportunities, it&#8217;s tough to know <a title=\"what to do when buying a franchise\" href=\"https:\/\/www.thefranchiseking.com\/how-to-buy-a-franchise\"><strong>what to do<\/strong><\/a>, and what <a title=\"don't do this when looking at a franchise\" href=\"https:\/\/www.thefranchiseking.com\/franchise-opportunity-research-dumb\"><strong>not<\/strong><\/a> to do. Now here comes the good part.<\/p>\n<p>The franchise model is the only business model that enables you-the prospective franchise owner, to find out just about everything you need to know about the brand and the business, <em>before<\/em> you plunk down any of your hard-earned money. You just need to know how to get the information you need.<\/p>\n<p>Case in point; you can call existing franchise owners (<em>franchisees<\/em>) of the franchise concept you&#8217;re looking into, and ask them questions that will give you the information you need. <em>Specific<\/em> information, including how much money they&#8217;re making as franchisees.<\/p>\n<p>With that in mind, here are <a title=\"what to ask franchisees\" href=\"https:\/\/www.thefranchiseking.com\/15-essential-questions\"><strong>15 great questions to ask franchisees<\/strong><\/a> that are guaranteed to get you to the heart of the matter. And you don&#8217;t need to use franchise consultant to get this information. You can easily do it yourself-if you learn how to get the facts.<\/p>\n<p><a title=\"questions to ask franchise owners\" href=\"https:\/\/www.thefranchiseking.com\/include-this-in-your-franchise-research\"><strong>Here&#8217;s another question to ask<\/strong><\/a>.<\/p>\n<p>But what about doing research on a brand-new franchise opportunity? How can I ask questions of franchisees if there aren&#8217;t any yet? <a title=\"research for franchise buyers to use\" href=\"https:\/\/www.thefranchiseking.com\/how-to-research-brand-new-franchise-opportunity\"><strong>This is how<\/strong><\/a>.<\/p>\n<p>Another thing you need to do (<em>as part of your due diligence<\/em>) is to <a title=\"visit local franchise owners\" href=\"https:\/\/www.thefranchiseking.com\/franchise-research-tip-spend-a-day-with-a-franchisee\"><strong>set aside a day to visit a franchisee<\/strong><\/a> in-person. That way you can see for yourself what &#8220;<em>a day in the life<\/em>&#8221; of a franchise owner consists of.<\/p>\n<p>Now, let&#8217;s say you&#8217;ve used the research tips above, <a title=\"best books for researching franchises\" href=\"https:\/\/www.thefranchiseking.com\/definitive-guide-to-franchise-research\"><strong>and the ones I&#8217;ve included in my Ebook<\/strong><\/a>. What&#8217;s next? What do you need to do to become part of the franchise industry?<\/p>\n<p>In this case, your next step is to find an attorney. But not just any attorney. A <em>franchise<\/em> attorney. <a title=\"using a franchise attorney\" href=\"https:\/\/www.thefranchiseking.com\/using-the-right\"><strong>The right franchise attorney<\/strong><\/a> One who knows about franchise ownership and what it takes to succeed.<\/p>\n<p>Finally, you need to <a href=\"https:\/\/www.thefranchiseking.com\/what-everybody-ought-to-know-about-franchise-consultants\" target=\"_blank\" rel=\"noopener\">learn about franchise consultants and brokers<\/a>, because you&#8217;re probably going to run into them.<\/p>\n<p>Are you feeling overwhelmed?<\/p>\n<p>I know it&#8217;s a lot to learn.<\/p>\n<p>Check this out. It may help.<\/p>\n<p>&nbsp;<\/p>\n<h2>Bicycles<\/h2>\n<p><a href=\"https:\/\/www.thefranchiseking.com\/wp-content\/uploads\/riding-a-bike.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-29121\" src=\"https:\/\/www.thefranchiseking.com\/wp-content\/uploads\/riding-a-bike.jpg\" alt=\"kid riding a bicycle\" width=\"344\" height=\"517\" srcset=\"https:\/\/www.thefranchiseking.com\/wp-content\/uploads\/riding-a-bike.jpg 333w, https:\/\/www.thefranchiseking.com\/wp-content\/uploads\/riding-a-bike-200x300.jpg 200w\" sizes=\"auto, (max-width: 344px) 100vw, 344px\" \/><\/a><\/p>\n<p>As a kid, I bet you couldn&#8217;t wait to learn how to ride a bicycle.<\/p>\n<p>Notice I didn&#8217;t say you couldn&#8217;t wait to <em>ride<\/em> a bicycle.<\/p>\n<p>I said that you couldn&#8217;t wait to <b>learn how <\/b>to ride a bicycle. That&#8217;s right. You were smart enough to know that you couldn&#8217;t just hop in a bike and start riding. Heck-there were only two wheels! You <em>knew<\/em> you&#8217;d fall right off. Unless you learned how to do it.<\/p>\n<p><strong>Unless someone taught you how to do it<\/strong>.<\/p>\n<p>And once you learned&#8230;great things happened. (<em>Even if you fell off a few times as you were learning<\/em>)<\/p>\n<p>That wonderful feeling of wind on your face. A little bit of <strong>freedom<\/strong>.<\/p>\n<p>It was <em>so<\/em> worth it.<\/p>\n<p><strong>Suggested Read: <a title=\"franchise business research tips\" href=\"https:\/\/www.thefranchiseking.com\/10-commandments-franchise-research\">The 10 Commandments of Franchise Research<\/a><\/strong><\/p>\n<p>&nbsp;<\/p>\n<h2>Freedom, Franchises, And Bias<\/h2>\n<p>Speaking of <strong>freedom<\/strong>, isn&#8217;t having more of it one of the reasons you&#8217;re thinking about buying a franchise?<\/p>\n<p>Of course it is. Of course you want to have more freedom (<em>and more control<\/em>) in your life.<\/p>\n<p>But you can&#8217;t just go out and buy a franchise-and hope for the best. You need to do <del>good<\/del> great research.<\/p>\n<p>And while asking franchisees questions about the business is crucial, as you&#8217;ll see, there are <em>other<\/em> people you need to get information from. But before I get into that, a word of caution.<\/p>\n<p>As you investigate franchises, you&#8217;re bound to run across franchise industry websites that promise to supply you with &#8220;<em>scientific research data<\/em>&#8221; about specific franchise opportunities.<\/p>\n<p>This data is collected from questionnaires sent to a small number of franchisees who are part of a specific franchise system.<\/p>\n<p>If you&#8217;d like to see what franchisees say about the franchise system they&#8217;re a part of, you can. But here&#8217;s the thing:<\/p>\n<p>The franchise brands on these websites <b>pay<\/b> to be there, as the companies behind these sites &#8220;<em>consult<\/em>&#8221; with them.<\/p>\n<p>The same goes for franchise &#8220;<em>review<\/em>&#8221; websites. So there&#8217;s a certain amount of bias. Scratch that. There <b>is<\/b> bias.<\/p>\n<p><a href=\"https:\/\/www.thefranchiseking.com\/franchise-business-reviews-legit\" target=\"_blank\" rel=\"noopener noreferrer\"><strong>Read about franchise websites that provide reviews<\/strong><\/a>.<\/p>\n<p>Given these points, you need to make sure you understand how websites that offer franchise research data and franchise brand reviews operate.<\/p>\n<p>Finally, unless someone is willing to guarantee their findings, i.e. back them up with the entire upfront cost of the franchise you&#8217;re buying, you have nothing (<em>noodle on that for a moment<\/em>).<\/p>\n<p>&nbsp;<\/p>\n<h2>Franchise Development Representatives<\/h2>\n<p>Another person you need to ask questions of is the Franchise Development Representative of the franchise business you&#8217;re interested in. Check out the one of them below, as it&#8217;s one of 29 questions to ask Franchise Development Reps that I include in my eBook, &#8220;The Definitive Guide to Franchise Research.&#8221;<\/p>\n<p>In this case, as with many of the other questions I supply, I provide an explanation of its importance, along with what to expect from them, answer-wise below the question.<\/p>\n<hr>\n<h3>Ask Your Franchise Sales Representative This Question:<\/h3>\n<p>&#8220;<em>What kind of marketing are you, as a company, doing<\/em>?&#8221;<\/p>\n<p>This question is important.<\/p>\n<p><\/p>\n<p>That\u2019s because you need to find out how they get to market, and how your franchise business will benefit from their proven marketing techniques and strategies.<\/p>\n<p><b>FYI:<\/b> Your rep may not give you specific information about their marketing techniques early-on.<\/p>\n<p>Instead, they may wait until you\u2019re further along in the process.<\/p>\n<p>The reason: some franchisors hold their marketing techniques close to the vest-and rightly so. They don\u2019t want the national or local competition stealing their ideas.<\/p>\n<p>My advice is to roll with the punches if they\u2019re reluctant to give you too much marketing information early in the process.<\/p>\n<p>If you like their franchise offering, and they feel you\u2019ll be a good fit, you\u2019ll eventually get the information you need.<\/p>\n<p>And remember, you\u2019re going to talk with franchisees, too. Most of them will share marketing information with you\u2026from both a national and local perspective.<\/p>\n<p><strong>Important!<\/strong> It\u2019s not unusual for a franchisee to be required to pay into a national marketing fund. Specific costs will be spelled out in the actual franchise contract, but figure you\u2019ll be paying anywhere from 1%-3% of your gross sales into the fund. So, if your franchise business is doing $500,000 in annual sales, and you\u2019re required to pay 1% of your sales into the marketing fund, you\u2019ll be writing checks totaling $5,000 to the franchisor, annually. That\u2019s a lot of money.<\/p>\n<p>And that\u2019s why, when you research franchises, you need to know about their marketing initiatives and their success.<\/p>\n<hr>\n<p><strong>Click The Cover Below To Learn More About How To Research A Franchise<\/strong><\/p>\n<p><a href=\"https:\/\/www.thefranchiseking.com\/definitive-guide-to-franchise-research\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-29127\" src=\"https:\/\/www.thefranchiseking.com\/wp-content\/uploads\/guide-to-research-1-2.jpg\" alt=\"the definitive guide to franchise research\" width=\"273\" height=\"349\"><\/a><\/p>\n<h3>Franchising Research FAQ&#8217;s<\/h3>\n\n\n<div class=\"schema-faq wp-block-yoast-faq-block\"><div class=\"schema-faq-section\" id=\"faq-question-1578665179387\"><strong class=\"schema-faq-question\">How do I research a franchise?<\/strong> <p class=\"schema-faq-answer\">Slowly and carefully. That includes asking franchise development representatives questions about their products\/services, how the franchises get to market, and how they support their franchisees.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1578665208108\"><strong class=\"schema-faq-question\">Should I talk with existing franchisees as part of my research?<\/strong> <p class=\"schema-faq-answer\">Yes! You need to contact franchisees, and ask them if they&#8217;re satisfied with their decision to buy the franchise and if they&#8217;re making good money.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1578665245186\"><strong class=\"schema-faq-question\">How many franchisees should I contact?<\/strong> <p class=\"schema-faq-answer\">At a minimum, you need to call 10-15 franchisees. And make sure you call franchisees in different geographical regions, so you can get a good feel of how the franchise is doing nationally.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1578665271811\"><strong class=\"schema-faq-question\">How do I do good research on a new franchise, that only has 3 or 4 franchisees  to talk to? <\/strong> <p class=\"schema-faq-answer\">If that&#8217;s the case, after you talk to the franchisees, you need to spend a few days at franchise headquarters, so you can see the operation in real-time and get to know the franchise team.   <\/p> <\/div> <\/div>\n","protected":false},"excerpt":{"rendered":"<p>Here&rsquo;s how to conduct franchising research for the franchise businesses you&rsquo;re thinking about buying: A. Thoroughly B. Carefully I&rsquo;ll go into more detail in a minute. Franchising Is A Powerful Business Model The franchise business model, if leveraged properly, is amazing&hellip; and powerful. As a matter of fact, it&rsquo;s been called the best business model [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":23296,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"open","template":"","meta":{"_mo_disable_npp":"","footnotes":""},"class_list":["post-10979","page","type-page","status-publish","has-post-thumbnail","hentry"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v28.0 (Yoast SEO v28.0) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>How To Research A Franchise: Franchising Research Tips<\/title>\n<meta name=\"description\" content=\"If you want to learn how to do franchise research the right way, learn from The Franchise King\u00ae. He&#039;ll teach you exactly how to do it.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.thefranchiseking.com\/how-to-research-a-franchise\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"How To Research A Franchise\" \/>\n<meta property=\"og:description\" content=\"If you want to learn how to do franchise research the right way, learn from The Franchise King\u00ae. 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