Is a Franchise Right for You? What You Should Be Thinking About as a Prospective Franchisee

Deciding which concept to franchise with is a big decision. It’s a sizable investment of both time and money, and finding the right franchise brand for a candidate’s lifestyle might seem overwhelming. Above all else, it’s important for candidates to follow a career path that will help them reach their individual goals. But what are some of the main factors prospective franchisees should be thinking about when deciding whether a franchise concept is right for them?

To start, candidates should outline what they hope to achieve with the business. Do they prefer to be hands-on or do they like managing people? How much money do they expect to make? What kind of lifestyle benefits do they want to have? These questions can help candidates narrow down the type of franchises they would like to focus on so they can make a more thoughtful decision.

“Most people are getting into franchise ownership to find that freedom and to take control of their destiny as their own boss,” said Franchise Captain founder Corey Elias. “Candidates need to do their research to ensure the concept is going to bring them satisfaction in that regard.” 

From there, candidates also need to be able to envision themselves in the role of business owner. It is imperative to believe in the company’s overall vision. Investing in a franchise means investing in an already-established and successful system, so it’s extremely important to embrace it — and that includes everything from the vision to the mission, people, culture and product.

“What a lot of clients don’t realize is that franchising is a partnership — they really need to keep that in mind,” said Elias. “One of the first goals should be creating a long-term partnership with the franchisor. As they go through the due diligence to ensure the franchise is a good business model and system, they also need to be feeling like it will be a partnership.”

Elias says franchisee candidates should also take stock of their individual strengths and ensure they will line up well with the necessary skill sets required for the business. “A lot of that comes from talking to existing franchisees and understanding what their day-to-day looks like,” he said.

Home Clean Heroes* franchisee David Houck originally joined the residential cleaning brand in June 2021 after a decade in the banking industry. When it comes to finding the right concept, Houck says his approach was very analytical, and he recommends first-time candidates create a list of what qualities they need in the business before diving into their research. 

“I created an Excel spreadsheet and divided all attributes into three categories: must-have, important and not-so-important,” Houck said. “I had probably ten must-have characteristics of the business, including strong onboarding training, ongoing support and details in every aspect of the marketing. I just kept going down the list, and Home Clean Heroes checked every box.” 

While franchising is an emotional decision, it also needs to be a practical one. One of the most important factors is the level of investment necessary for a particular brand. If prospective franchisees don’t have the specified amount of liquid capital outlined in Item 19 of the brand’s FDD (Franchise Disclosure Document), they must ask themselves how much they are willing to borrow and research the timeline on the return-on-investment for that specific brand. 

“The investment level is very important — candidates have to look at a concept based on their personal finances,” said Houck. “If you can afford a McDonald’s from a budget standpoint, then you have a lot of options, but there are also a lot of options for those working with a shoestring budget.”

Lastly, candidates should zoom out and evaluate what their long-term goals are with the business. If it is to create generational wealth and pass on the business to their children, they should look for concepts that lend themselves to scalable, multi-unit growth. If it is to grow the business and sell it in a few years, they should look for concepts that offer an easy and reliable exit strategy. 

Setting goals is a key way to help measure success. The overall goal of franchising should be operating a successful business, and by setting personal goals ahead of time, candidates can be better-positioned to find the right franchise fit that will allow them to achieve that larger goal down the line.