What Franchisees Look for in a Franchise Brand

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 isn’t something entrepreneurs take lightly. As an emerging franchisor looking to appeal to as many entrepreneurs as possible, it is imperative to understand what prospects are looking for in a franchise opportunity. From there, franchisors can focus on building out areas of the franchise that need work, answering questions ahead of time and allocating resources correctly. 

Here are some factors franchisees will look for when considering a franchise concept. 

Passion

When deciding whether to invest in a particular franchise brand, franchisees will first-and-foremost ask themselves whether they believe in the company’s overall vision. Investing in a franchise means investing in an already-established and successful system, so it’s crucial 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 Franchise Captain founder Corey 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.”

Lifestyle

In addition to a connection with the brand, prospective franchisees must feel confident that the business will provide them with the lifestyle they want to live. Do they prefer to be hands-on, or do they like managing people? How much money do they expect to make? These are the kinds of questions that will be top of mind, and franchisors should be prepared to answer them.

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

Investment 

While franchising is an emotional decision, it is also a practical one. One of the most important factors is the level of investment necessary to become a particular brand’s franchisee. “The investment level is very important — candidates have to look at a concept based on their personal finances,” said Home Clean Heroes* franchisee David 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.”

Prospective franchisees will take a hard look at all the numbers and financing options associated with each of the franchises they’re looking at. For example, a lower start-up cost can be beneficial, as that could mean a faster ROI. Franchisors must keep this in mind and be transparent when disclosing the investment details. 

Availability

One of the most important things to consider when investing in a franchise is whether the concept fits the desired market. Franchisees will want to be in a market they are familiar with, but it also has to make sense for the brand. It is essential that the concept is located somewhere that aligns with target demographics. Franchisors should work alongside prospects to determine whether the product will be well-received and discuss how many locations can realistically be added to the territory and surrounding territories.

Validation

It is no secret that validation is crucial in franchise sales. Franchisees are investing their life savings in a brand, and they want to talk to someone who has done the same. Franchisors should encourage prospects to take advantage of the resources given to them in the FDD, specifically Item 20, which outlines such information as a list of the brand’s current franchisees and their contact information.

As a franchisor, make sure the validating franchisees are prepared to answer questions, such as: Did their investment fall within the range listed in the disclosure document? Are they happy with their current returns? Do they feel good about the decision that they made? How did the brand support franchisees amid COVID-19? These conversations can provide prospects with new and confidence-boosting insight into how the company functions and if they are delivering on its promises.