10 Things that Don’t Matter When Buying a Franchise Brand

What’s the right brand for you and why should you consider buying into a particular franchise brand over another? When a new franchisee is looking to invest in a brand, they often rely on a franchise consultant, family, friends and preliminary research to help guide them throughout their franchise discovery process. Often times, a potential franchisee is found thinking about the top things to consider when buying a brand. Instead, consider these 10 simples tips that don’t matter when buying a franchise brand.

Tips provided by Sean Fitzgerald, Chief Brand Strategist for No Limit Agency* and 1851 Franchise Magazine.

1) You don’t have to have previous industry experience to buy a particular brand. The franchisor will show the new franchisee how to operate that business in whatever particular industry they choose. In most cases, franchisors are looking for business minded people that are eager to learn and they can teach you the necessary industry experience.

2) You don’t have to have a franchise broker. Franchise brokers can match you up with a franchise system, but they’re typically not involved in negotiations. Brokers tend to match people up to the right opportunity to handle the full negotiation. You don’t necessarily need a franchise broker. Sometimes it’s beneficial to rely on research or word of mouth from family, friends or a current franchise owner.

3) You don’t have to already be in franchising; a majority of those who buy franchises may have never been in the system before.

4) You don’t have to only buy one location when you start — many brands will allow you to buy multiple locations at a time

5) You don’t have to live in the market area where your franchise is going to be. It may be your preference to be local, but if a location isn’t available, you can still have a franchise in a different city or even state.

6) You don’t have to find a location prior to signing because the franchisor will help you find the perfect location. You want to rely on the franchisor’s expertise because they will be able to lead you in the right direction with their knowledge to secure the most successful location for the brand.

7) You don’t have to have your business entity set up before you buy the franchise. Some brands will allow you to sign the agreement before transferring it over to an LLC.

8) Most brands will say that the franchise agreement is non-negotiable, but that’s not the case. Franchise agreements are negotiable and you’re allowed to make changes.

9) It doesn’t matter how many franchises a brand sells in a total year. There’s a misconception that a brand is on fire if hundreds of units are sold, but all that matters is how many locations are actually open.

10) The development team is a wonderful and trusted source throughout the process, but be sure to rely on franchisees in the system to get their feedback and advice and learn what worked and didn’t work for them.