How to Buy a Franchise: Mutual Evaluation Process

Deciding to invest in a franchise involves extensive research and thoughtful consideration, especially when your life savings are on the line. However, the decision to join a franchise is not solely in the hands of the ambitious entrepreneur. In fact, as franchisees carefully weigh the pros and cons of potentially becoming part of a franchise, the franchisor is simultaneously conducting its own research to determine whether or not you will be a good fit. 

In the latest episode of the “How to Buy a Franchise” Masterclass, 1851 Franchise publisher Nick Powills reveals what you need to know about this mutual evaluation process. 

What is the Mutual Evaluation Process?

The mutual evaluation process is a crucial stage in the journey of potential franchisees and franchisors coming together. While you are evaluating the franchise as a whole, from the brand’s culture to the business model, the franchisor will also be conducting a deep dive on your potential as a successful franchisee. 

“Understand that you as a candidate are going to be reviewed by the franchisor, and the franchisor is going to be reviewed by you,” said Powills.

During this mutual evaluation process, the franchisor will examine everything from your financial bandwidth to your background both personally and professionally. This thorough scrutiny is designed to ensure that you not only have the necessary financial resources to invest but also possess the stability and credibility required for a successful franchise venture. 

If you’ve made it through the initial stages of the franchise process, a franchisor may invite you to a Discovery Day, which presents both parties to explore their potential partnership in-person. While attending a Discovery Day, you should be prepared to ask questions and do your best to gather as much information as possible about the franchisor and the opportunity. 

“I believe a franchisor that develops their candidates into franchisees ends up building the strongest relationships. But it’s a two way street,” said Powills.

Are you in the process of seeking out franchise opportunities? We can help! Check out https://1851growthclub.com/ for more information.