10 Tips for Researching Franchise Brands

If you’re preparing to make your first investment in a franchise brand, you are in luck. There are more options than ever before, with franchise brands in virtually every segment of every industry. Whatever your professional experience and personal interests, there is almost certainly a franchise brand that will work for you. Of course, that expansive field of options can make it hard for a prospective franchisee to know where to start. To help, we talked to franchise owners and professionals from a variety of different segments to learn how they researched and selected their brands. Based on those conversations, here are our 10 best tips for researching franchises.

1. Use a broker.

“I knew that I wanted to own my own business, but I didn’t want to dive into a model that wasn’t right for me. I saw some great things in franchising, but I also some negative things from people who go into the wrong model,” said Kevin Galbreath, a Lawn Doctor* owner in San Marcos, Texas. “So I reached out to a franchise broker, who worked with me to figure out what kind of model would work for me. He looked at all angles of my interests and business experience. At the end of the day, he matched me with a handful of brands, but the very first one he recommended was Lawn Doctor.”

2. Know your market.

“We’re in a beach town, so there’s a ton of foot traffic and lots of people looking for a treat,” said Dana Linden, who opened her first SoBol store in Long Beach this year. “We’re also right next to a gym, and we get a lot of business from the post-workout crowd.”

3. Look for businesses that speak to your values.

“They walked the walk,” said John Schottenbauer on why he chose to join Christian Brothers Automotive. “They didn’t just have Christian in the name. It was clear that their operations were all based on Christian values. My only goal is to treat customers with respect, and the Christian Brothers mission statement is to love your neighbor as yourself. So it’s easy. It’s like following the law. I work hard, but it comes naturally. It’s just a matter of treating people right.”

4. Pick a segment with longevity.

“It may not come in 2019, but the economy is due for a correction, and when consumers start tightening their belts, a lot of franchise brands are going to be hurting,” said Nick Powills, Chief Brand Strategist at No Limit Agency* and Publisher of 1851 Franchise. “The concepts that can keep a healthy consumer base during a recession are the best bet right now. Haircuts, children’s education, tax services; these are services people need, and they are going to keep using them even when they have to cut out other luxuries, like eating out.”

5. Go with what you know.

“I was a loyal Toppers customer all throughout college, even when I was working as a driver at Pizza Hut,” said Keith Allen who owns three Toppers Pizza* franchises with his father in Minnesota. “That was at the top of my mind when we were looking at new opportunities. We became pretty narrow-sighted on Toppers. They roped me in as a customer, and I love the brand … At the end of the day, we don’t always agree with every decision the brand makes, but they are passionate about the brand and so are we, so it’s a great fit.”

6. Make the trip to a discovery day.

“First of all, we got to try the food, which was incredible,” said McAlister’s Deli franchisee Preet Saini about his experience at the franchise’s discovery day. “That was our first big hint that the brand was going to do well out here [in Arizona]. But we also got the chance to ask a lot of questions and really dig into the business model, and that’s where we found what we were looking for. They’ve got a rock-solid corporate backing, and they have the ability to innovate and experiment as they grow.”

7. Know your goals.

“We knew that we wanted to grow, so we were looking for something that had a lot of room for growth on the West Coast,” said Saini. “We came across an article that mentioned that McAlister’s was looking to expand in Arizona. We reached out to them and a few other brands, and eventually decided that McAlister’s was what we were looking for.”

8. Check out the franchise development site.

“A brand’s franchise development site is one of the most important tools it has to sign new franchisees, so it’s often the first place to look for important information regarding the opportunity,” said Michael Palm, Senior Project Manager, Digital at franchise marketing and PR agency No Limit Agency. “Granted, you are only seeing what the franchisor wants you to see, but if you are looking for more information, that’s the place to start your inquiry.”

9. Talk to franchisees.

“I liked everything I heard from the existing owners,” said Chris Paris, a three-unit Anytime Fitness franchisee in Delaware. “They confirmed everything I thought about the business, and they had great operations going. After talking to them, I was in.”

10. Read the FDD.

“The FDD is one of the best ways for a candidate to validate what they have been told about a brand or what they have read on the brand’s website,” said Dawn Abbamondi Marketing and Brand Development Consultant for SMB Franchise Advisors*. “If anything contradicts what they’ve learned, they should ask why and make sure they have a satisfying answer before they sign on.”