1851

<p>Looking to become a business owner but not sure where to start? If you don’t have any entrepreneurial experience, then franchising is a good place. Franchise brands are backed by a proven system that <a href="https://1851franchise.com/why-buy-a-franchise-2714619#home"><u>can catapult franchisees toward success and profitability</u></a>. But before you sign your life savings away, it’s important to do your research on a brand to ensure it’s the real deal.</p><p>1851 Franchise spoke with <a href="https://www.linkedin.com/in/steven-gardner-8289993/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=how-to-evaluate-a-franchise-opportunity-properly-2714690" target="_blank" rel="nofollow"><u>Steven Gardner</u></a>, founder of <a href="https://www.qsrfranchisedevelopmentgroup.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=how-to-evaluate-a-franchise-opportunity-properly-2714690" target="_blank" rel="nofollow"><u>QSR Franchise Development</u></a>, about properly vetting a franchise and learning best practices to help you make a more informed decision when choosing a brand.</p><h4>How to Review the Franchise Disclosure Document</h4><p>After your initial inquiry into a brand, the franchisor may send you its Franchise Disclosure Document (FDD) — the brand’s Bible, so to speak. Within the FDD you’ll find important details like cost to build, the initial franchise fee, ongoing royalties, marketing costs, a list of existing franchisees and those who have left the system. These documents are usually pretty lengthy and overwhelming to someone who’s unfamiliar with the jargon, so it’s helpful to review it with someone who knows what they’re talking about, like a lawyer or franchise consultant.</p><h4>Who to Talk to About the Brand</h4><p>No one’s going to better prepare you for the franchising experience than franchisees who are already in operation. If they know you won’t be encroaching on their territory, they’ll likely be more than happy to offer advice and offer insights into their day-to-day.&nbsp;</p><p>Be prepared to call more than a few franchisees. You want the chance to talk to successful franchisees , those who might be struggling and even franchisees who might have sold their business to get the full perspective.</p><p>But Gardner says it’s not enough to stop there. Talk to someone who works in franchise development or a franchise consultant as well. They can help you read through the FDD to spot anything suspicious.&nbsp;</p><p>“There are a number of people who you should be talking to, including people like me who can help you spot red flags,” he said. “I put myself in the shoes of the franchisee so I can offer an overview.”</p><h4>How to Ask the Right Questions</h4><p>Once you’ve got the right franchisees on the phone, it’s just as important to ask the right questions.&nbsp;</p><p>It’s helpful to learn the franchisees’ history with the brand; how many units have they opened? How many have they closed? Do they plan on opening any more? If they did close any stores, what was their reasoning?&nbsp;</p><p>Inquire about their experience working with the franchisor; were they attentive? Did they provide support when they needed it, and what did that look like? How did they treat them and were they true to the promises they made early on?</p><p>Most importantly, are they making the money they expected to make? At the end of the day you’re investing your savings in an opportunity to earn money, so if it’s going to take you longer than expected to make a profit, perhaps it’s time to start researching a different brand.&nbsp;</p><h4>How to Research the Founders</h4><p>Spend time looking into how the brand came about and who’s behind it. Are there any wrinkles in the founders’ story or in their financials? The more you learn about the founders, the more you’ll understand the motivations of the brand and if its values align with yours.&nbsp;</p><p>“I’d want to know a lot about them personally,” said Gardner. “Often the brand's financials are a big indicator, I would go to an accountant who’s able to read through them.”</p><h4>How to Spot a Franchise With Strong Support</h4><p>One of the main reasons to buy into a franchise is the built-in support system, so it’s in your best interest to understand what exactly support looks like from the franchisor. If you’ve never owned a business before, you’re likely going to need a lot of hand-holding, even if just at the beginning. Find out how extensive training is and how in-depth the brand’s manuals are. Beyond training, find out what ongoing support looks like. A good franchisor will have your back every step of the way, and a bad one might leave you to fend for yourself when things get tough.</p><p>“Learn more about what their support team looks like and how they are going to support you from the time that I go into training and open my unit and beyond that. What kind of ongoing support should you expect, and do they deliver?” said Gardner.</p>

How To Evaluate a Franchise Opportunity Properly 

1851 Franchise

Buying into a franchise is a big life decision, so make sure to do your due diligence before committing to choosing one to sign with.

how-to-evaluate-a-franchise-opportunity-properly

petbar

petbar franchise logo tenth 10th anniversary

10 Years Strong: How petbar Turned One Dallas Boutique Into a Fast-Growing National Franchise

petbar-10-years-strong-franchise-growth

Griswold

Beaumont Enterprise: Local Woman Brings Griswold Home Care Franchise to Greater Beaumont, Texas

griswold-home-care-greater-beaumont-opening

Layne's Chicken Fingers

image of laynes chicken the Soon to be Famous™ Texas-based chicken finger franchise

Tasting Table: Layne’s Chicken Fingers Rising Fast in the Fried Chicken Market

tasting-table-laynes-chicken-fingers-growth-2025

Image Studios

IMAGE Studios Expands in Atlanta: Redefining Salon Suites in a Fast-Growing Market

image-studios-atlanta-expansion

Comfort Keepers

Carolinas-Based Comfort Keepers Owners® Add New Territory Amid Growing Demand for Senior Care

comfort-keepers-carolinas-franchise-expansion-rock-hill

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

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

How AI Is Transforming Restaurant Operations and Franchises

ai-impact-restaurants-franchises-human-centric-technology

Round Table Pizza Franchisees Take FAT Brands to Court Over Marketing Fund Mismanagement

round-table-pizza-franchisees-take-fat-brands-to-court-over-marketing-fund-mismanagement

FAT Brands Nears Bankruptcy as Creditors Demand Repayment of $1.3 Billion Debt

fat-brands-nears-bankruptcy-as-creditors-demand-repayment-of-13-billion-debt

Callaway Sells Majority Stake in Topgolf to Private Equity for $770 Million

callaway-sells-majority-stake-in-topgolf-to-private-equity-for-770-million

Keith Sizemore headshot, Radiance Holdings

Radiance Holdings Names Keith Sizemore Chief Development Officer

keith-sizemore-radiance-holdings-cdo

image of jerome hanway from right at home Las Cruces, New Mexico 1851 franchise franchisee spotlight

Jerome Hanway Is Building His Right at Home Franchise Around His Mission To Serve

right-at-home-franchise-las-cruces-jerome-hanway

image of manar landis and maha zirn kashoor from griswold franchise in oklahoma city

Sisters Channel Humanitarian Experience Into New Griswold Franchise Serving Oklahoma City Families

griswold-franchise-oklahoma-city-north-manar-landis-maha-zirn-kashoor

1851 Franchisee Spotlight graphic with photo of Eli Cohen, Layne's Chicken Fingers logo

C5 Restaurants Grows its Texas Footprint with 40 Layne’s Chicken Fingers Locations Planned Statewide

eli-cohen-laynes-chicken-fingers-texas

image of michael panos and michel panos, owners of mellow mushroom in Atlanta

What Makes Mellow Mushroom a Strong Franchise Investment? Insights From the Panos Family’s Metro Atlanta Portfolio

mellow-mushroom-franchise-panos-restaurant-group-metro-atlanta

A Practical Playbook: Who To Call First When Franchising Your Business

franchising-your-business-who-to-call-first

Photo of group of dogs standing together in day care facility

Top Pet Boarding and Day Care Franchise Opportunities for 2025

top-pet-boarding-daycare-franchises

The Top 15 Pet Supplies and Retail Franchises for 2025

the-top-15-pet-supplies-and-retail-franchises

AI-related job cuts, October U.S. job cuts, American job cut record

AI-Fueled Layoffs Reshape the U.S. Job Market — And Highlight Franchising’s Resilience

ai-job-cuts-franchising-path-forward

The 15 Top Pet Grooming Franchises To Consider for 2025

the-15-top-pet-grooming-franchises-to-consider

How To Evaluate a Franchise Opportunity Properly

MORE STORIES LIKE THIS