1851

Do your homework. It&#8217;s a phrase most of us had pounded into our heads from a young age. But the lesson should last long after you&#8217;ve left the classroom. In the franchising world, homework helps separate successful entrepreneurs from bad business investors. Finding the right relationship can make all the difference. It starts with due diligence, and that means a thorough investigation of the entire franchise system. Below are five important tips on where to focus those efforts in order to make the most informed decision possible about your next franchise investment. Ask the Experts If you have a toothache, you probably wouldn&#8217;t just remove it yourself. Instead, you&#8217;d consult a dentist&#8212;an expert in their field&#8212;to provide you with advice on the best course of action. A franchise consultant should play the exact same role, says Rick Robinson, founder of <a href="http://www.services4franchising.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=vetting-the-franchise-system-2635" target="_blank" rel="nofollow" target="_blank">Services4Franchising</a>. &#8220;The number of franchises out there is overwhelming, and the investment ranges are all over the board,&#8221; Robinson said. &#8220;It can get really confusing, really quickly to tell the difference between them. Many people think they want a certain franchise, but they have no idea how expensive it is or how to run it. An experienced franchise consultant knows what to look for to find the right match for both a franchisee and franchisor.&#8221; Robinson, who has helped pair more than 800 franchisees with successful franchising opportunities during his 30-year career, says there is no replacement for experience. &#8220;Experience is one of the biggest factors,&#8221; Robinson said. &#8220;I&#8217;ve worked as a franchise executive and master franchisor and I&#8217;ve seen all sorts of personalities. A franchise candidate that matches perfectly with one brand might end up clashing with another. Knowing what pairs well together is the key to franchise success.&#8221; Consider All the Elements There are lots of variables to consider when investigating a franchise, and often the ones that stick out as most obvious are also the most overlooked, Robinson said. &#8220;You have to look at everything from the fit of the franchise brand and how it fits your particular set of talents to the hours and quality of life it will provide,&#8221; he said. &#8220;My goal is to match them up with a franchise that is a good fit for them. We do that by interviewing them and asking them very carefully chosen questions. Have they managed people before? If so, what was their role? Do they have experience in sales? Do they know how to market and business on their own, or do they need guidance?&#8221; It&#8217;s rare for a franchisee to find a business that becomes the &#8216;perfect fit&#8217; without some sort of professional help, Robinson said. That&#8217;s why it&#8217;s worth your time to get the full picture before ever signing on a dotted line. &#8220;Our goal is to find a business that produces the lifestyle you want. That doesn&#8217;t always mean that it&#8217;s the sexy business you thought it would be,&#8221; Robinson said. Pick Up the Phone Speaking with current franchisees in the system is one of the best calls a potential franchisee can make. And, don&#8217;t just stick to the short list of names provided by the franchisor, said franchise consultant Steve Beagleman of SMB Franchise Advisors. &#8220;Go through the Franchise Disclosure Document and start down the list,&#8221; he said. &#8220;And, don&#8217;t go into the calls cold. Have at least five or six good questions prepared. Ask the franchisees things like whether the business has met their financial expectations, and how long did it take them to get a return on their investment? Franchisees are usually pretty honest on those calls, because they were once in the same position you are.&#8221; &#8220;This is your chance to validate the claims you&#8217;ve heard,&#8221; agreed Robinson. &#8220;Franchisees can answer almost anything they want. Franchisors can be forced to hold back on things like profit and income because of federal laws. Questions I always advise potential franchisees to ask include: how did they get launched properly? What did they do right and wrong? And, is there anything they would do differently?&#8221; Get the Lowdown on Marketing There&#8217;s a simple goal to aim for once you do sign on the dotted line, Robinson says: break even as quickly as possible, then start earning money. Often the best way to do that is to build buzz around the brand and your contribution to it. &#8220;That&#8217;s another important thing to ask existing franchisees and franchisors as you&#8217;re doing your due diligence,&#8221; Robinson said. &#8220;What are the advertising and marketing programs available to me to help drive business to my franchise? What does the franchisor do to help bring in business to me? And, as importantly, what tools does a franchisor provide for me to use to help bring me clients?&#8221; A robust marketing program can mean the difference between quick success for a new franchisee and years of toiling to turn a profit. Go Deep Into the FDD Robinson&#8217;s last tip may be the most crucial: an in-depth review of the Franchise Disclosure Document. It&#8217;s not an optional step, he stressed. &#8220;This is one of the most important things you should do as a potential franchisee, because the FDD lays out all the details of what you&#8217;re purchasing,&#8221; he said. &#8220;Pay special attention to things like length of contract, territory definitions, and investment items that tell you what the total investment is going to be. Make sure to include things like royalty and franchisee fees into the equation.&#8221;

1851 Franchise

Homework will help you make smart decisions. 

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

Vetting the Franchise System   

vetting-the-franchise-system

Layne's Chicken Fingers

Layne's Chicken Fingers - VP of Culture Operations - Cuyler Esposito - 1851 Franchise

Layne’s Chicken Fingers Appoints Cuyler Esposito as Vice President of Culture Operations

laynes-franchise-cuyler-esposito-vp-culture-operations

Jollibee

Jollibee Franchise - EOY 2025 - Momentum 2026 - 1851 Franchise

Jollibee Closes Out Landmark Year With Strong Franchise Momentum Across the United States and Canada

jollibee-franchise-expansion-2025-north-america

Fitness Premier

Fitness Premier Franchise - Looking Ahead to 2026 - 1851 Franchise

Building a Fitness Business With Staying Power: Why Fitness Premier Is Looking Ahead to 2026

fitness-premier-franchise-2026-growth-strategy

Fresh Coat

Fresh Coat Painters - Seph Duggan - Lakeland Florida - 1851 Franchise

Multigenerational Contractor Seph Duggan Launches Fresh Coat Painters of Lakeland, Florida

fresh-coat-painters-franchise-lakeland-seph-duggan

Fresh Coat Painters - Mary Steele - Franchisee Feature - 1851 Franchise

How a Major Life Pivot Led This Military Spouse to Open a Fresh Coat Franchise in Melbourne, Florida

fresh-coat-franchisee-mary-steele-melbourne-florida

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

Domino's Franchise - North Pole - Dec 2025 - 1851 Franchise

Domino’s Pizza Brings Delivery Cheer to North Pole, Alaska

dominos-pizza-franchise-north-pole-alaska

California Pizza Kitchen’s Sale Is the Latest in the Era of PE-Backed Turnarounds in Franchising

california-pizza-kitchens-sale-is-the-latest-in-the-era-of-pe-backed-turnarounds-in-franchising

Buying a fitness franchise, people exercising

Boutique vs. Big Box Gym Franchises: Which Offers Best ROI in the $7 Billion Fitness Market?

buy-fitness-franchise-boutique-big-box-comparison

Pieology Pizza Enters Chapter 11 Following Costly Bid To Save Struggling Stores

pieology-pizza-files-chapter-11-bankruptcy

CNBC: McDonald’s Will Assess if Franchisees Are Offering Value for Customers Under New Standards

mcdonalds-franchise-standards-value-metric

Scenthound Franchise Costs, Fees, Profit and Data for 2025

scenthound-franchise-costs-fees-profit-and-data

Christmas Decor Franchise Costs, Fees, Profit and Data for 2025

christmas-decor-franchise-costs-fees-profit-and-data

Ellianos Coffee Franchise Costs, Fees, Profit and Data for 2025

ellianos-coffee-franchise-costs-fees-profit-and-data

No-H2O Franchise Deep Dive - Costs, Fees, Profit and Data - 1851 Franchise

No-H2O Franchise Costs, Fees, Profit and Data for 2025

no-h2o-franchise-deep-dive

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

Do You Qualify? A Look at the Chick-fil-A Franchise Requirements

do-you-qualify-a-look-at-the-chick-fil-a-franchise-requirements

The Top 15 Pet Supplies and Retail Franchises for 2025

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

The Top 15 Pet Wellness and Vet Care Franchises for 2025

top-pet-wellness-franchise-opportunities

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

The 15 Top Pet Grooming Franchises To Consider for 2025

Vetting the Franchise System

MORE STORIES LIKE THIS