1851

Due diligence; it&#8217;s a term often heard in the world of franchising and has been considered a necessary course of action for anyone in the industry. That supposition is completely correct. Buying a franchise is a huge step in any businessperson&#8217;s career, and to ensure that you have found a truly perfect opportunity, due diligence must be performed. Truth is, there is a vast array of &#8220;great&#8221; franchise opportunities out there; the key is finding the right one for you. Here are ten tips for doing just that. Conduct a self-evaluation. Are you ready for this? What exactly do you want to achieve by owning a business? Spend some time exploring the many facets of running your own business and how they will affect you personally. Evaluate financing options. How much can you afford? What is your net worth and liquidity? Before beginning the search for your next opportunity, be sure to clearly identify how much money you are able and willing to invest in your next venture. Begin market research. Reach out to trade associations for the operational view of the type of franchise you are interested in. Even resort to Google; use the vast informational resources that exist to gain more insight into your potential market. Seek professional advice. Franchising has been around a while&#8212;since 1851 (See what we did there?), in fact. There are hordes of franchise experts in the forms of consultants, accountants, solicitors, etc. that are happy to help you in the decision-making process. Read the FDD. Let&#8217;s imagine you found the perfect franchise opportunity for you. What&#8217;s next? One of the most important pieces of a franchise is the FDD (Franchise Disclosure Document). The FDD will quickly become your most trusted ally. Under the Franchise Rule, the Federal Trade Commission requires that you receive the FDD 14 days prior to signing any contracts. The FDD will contain information regarding franchise fees, available training, rules and restrictions and any vital information to operating a franchise. Perform a franchise growth assessment. Looking at the growth of a franchise over a certain period of time can reveal a great deal. Rapid growth can give the impression that a system is successful, but what if it is just a fad? Will it be another new trend that loses its novelty within a couple of years? If a franchise has been operating for decades with a steady growth incline, you know it&#8217;s a proven model. Talk to current and former franchisees. The best insight into any business is from the people currently running it. Find out the successes they have had. If you speak with a former franchisee, find out why they left and what they liked and disliked about the business model. A couple of thoughtful questions can save you heartbreak in the future. Determine franchise Involvement. Is the amount of support you will receive from the corporate office pertinent? Will they want to micro-manage everything you try to do? Do you want a hands-on company, or do you want to run this as your own business? These are questions that current franchisees would know the answers to. Define an exit strategy. The exit strategy is an oft-forgotten part of a business plan. You need to decide your business&#8217;s timeline. Will you stay for five years and run? Is this a business you want to pass on to a family member after you retire? Be sure that your franchise model accommodates these long-term plans. Define a work/life balance. Do you want to be the face of your new franchise opportunity, or would you like to take a less hands on role in the day-to-day aspects of the business? Educate yourself on how demanding a potential opportunity will be before you decide on taking that next step.

1851 Franchise

From due diligence to self-evaluation, these are the steps to take before diving into the franchise industry.

This brand page has been paid for by 1851. Content within this page that is paid will showcase a Sponsored icon. This means the brand has engaged 1851 FRANCHISE to write the content. Content without the Sponsored Icon is aggregated media placements the brand earned. Questions can be sent to editorial@1851franchise.com

10 Steps to Finding the Next Great Franchise Opportunity for You   

10-steps-to-finding-the-next-great-franchise-opportunity-for-you

HomeTeam Inspection Service

Photo of HomeTeam Inspection Service representative giving presentation

Strategic Partnerships Fuel Franchise Growth at HomeTeam Inspection Service

hometeam-inspection-service-franchise-growth-partnerships

Express Employment Professionals

What’s in the 2025 FDD? A Closer Look for Express Employment Professionals Franchise Buyers

whats-in-the-2025-fdd-a-closer-look-for-express-employment-professionals-franchise-buyers

petbar

How-petbar-Makes-Pets-and-Their-Owners-Happy-as-Part-of-the-Family-in-a-Clean-and-Fun-Environment

How petbar Makes Pets and Their Owners Happy as Part of the Family in a Clean and Fun Environment

petbar-franchise-opportunity-boutique-pet-grooming

petbar Franchisees Win the $6.89B Global Market With Complete Transparency, Self-Service and Membership Models, Creating the Happiest Place for Dogs

petbar-franchise-opportunity

Why petbar Wants to Be the “Disney World for Dogs” — and a Dream Business for Franchisees

petbar-franchise-dan-ashley-o-loughlin-qa

Buying a Franchise Masterclass

 Franchise Opportunities

Get Support Buying a Franchise

How to Buy a Franchise White Paper

How to Buy a Franchise

How to Sell Franchises

How to Grow a Franchise

Find a Franchise Supplier

1851 Franchise Opportunities

Franchisor News

Franchisor Power Rankings

FranCamp Mastermind Summit

Franchise Development Website Builder

Franchise Resources

What ALEC-Laffer's Report Means for Franchising

Website Awards

Power Rankings

About 1851

Advertise on 1851

Contact 1851 Editorial

Terms of Use

1851 Login

GROWTH CLUB LOGIN

facebook

instagram

twitter

linkedin

youtube

Chick-fil-A Tops Customer Satisfaction Rankings for 11th Year as Challenger Brands Gain Ground

chick-fil-a-tops-customer-satisfaction-rankings-for-11th-year-as-challenger-brands-gain-ground

Technomic Releases Annual Ranking of the Top 15 Fast-Food Chains in the U.S.

technomic-releases-annual-ranking-of-the-top-15-fast-food-chains-in-the-us

Rising Jobless Claims Could Signal Challenges — and Opportunities — for Franchising

rising-jobless-claims-affect-franchising

Hardee’s Lawsuit Highlights the Risk of Going Off-Model in Franchising

hardees-franchise-lawsuit-paradigm-investment-group

Hooters Leans Into Franchising With Closure of 30 Company-Owned Stores - Agg - 1851 Franchise

Hooters Leans Into Franchising With Closure of 30 Company-Owned Stores

hooters-franchise-model-company-owned-closures

The Ultimate Guide to Selling Franchises: How To Create a Strong Incentive

how-to-build-strong-incentives-to-attract-prospective-franchisees

How Vishal Juneja Turned a Family Tradition Into a Paris Baguette Franchise

How Vishal Juneja Turned a Family Tradition Into a Paris Baguette Franchise Built on Heart and Community

10 Steps to Finding the Next Great Franchise Opportunity for You

MORE STORIES LIKE THIS