As someone who has been a franchisee, a master franchisor, the co-founder of a franchise company (which I ran as CEO for 12 years) and now a consultant who specializes in franchising, I’ve come to appreciate the significance of selecting the right franchise brand.
It’s not just about looking at the profitability or the brand’s recognition—it’s about fit. The relationship between a franchisee and franchisor is deeply rooted in trust, collaboration, and shared vision. If the fit isn’t right, the business relationship won’t thrive, no matter how great the brand looks on paper.
Understanding the brand
Before making any decisions, it’s crucial to fully understand the brand you’re considering. This means more than just a quick overview of the logo, marketing materials, and company website. Dig deeper into the company’s values, mission, and long-term goals. You are, in practical and in legal sense, partnering with the franchisor. As in any partnership, you want to do your due diligence about the person(s) behind the brand.
There are three great questions you should ask of every franchisor as you interview them for potential partnership.
- Can you define your culture and how it is connected to the strategy?
- What is the support model? Please explain in detail the various levels of support for the franchise partners.
- Who is the ideal franchise partner for your brand?
The answers to these questions will help you assess the quality of the franchisor and their commitment to long-term growth and support of their franchisees.
The importance of fit
Fit goes beyond just the brand’s philosophy—it includes understanding the operational side of the franchise as well. Consider your own strengths and weaknesses. Does the franchise model play to your skills? For example, are you someone who thrives in customer service, or do you prefer behind-the-scenes operations? Some franchise brands require hands-on leadership, while others may demand a more managerial approach. The right fit will be a brand that complements your abilities and interests.
Franchise companies are like snowflakes in that no two are exactly alike.
You have to think about what you love to do every day or what you would love to do every day, and see if this is a fit.
Financial considerations
Additionally, the financial expectations should match your comfort zone. Are you prepared to make the investment required for the franchise you’re considering? Beyond the initial franchise fee, understand the ongoing costs for running the business, not just those paid to the franchisor. Often, franchise prospects get fixated on royalties, marketing spend and other smaller items rather than looking at the business holistically.
Reviewing potential ROI (return on investment) and how much of that you control is part of this process. In addition, think about ROTI (return on time invested). Is this a lifestyle business that has a reasonable amount of up front capital or is this a lower cost business but requires more of your time? These types of considerations will help you navigate and narrow the list of prospective franchise brands you need to invest time with.
Your initial impression
A good franchisor will make some early decisions on you as a franchisee. Some aspects better franchisors consider are:
- Did you attend your meetings as scheduled and were you early or late for the meeting?
- Did you have intelligent questions?
- Are you someone who is enjoying the journey and learning through these discussions?
- Does it feel as though you are a good fit, have a professional and fun approach to this type of a partnership?
You should also consider the franchisor by looking at some of these things:
- Did the franchisor reply to your inquiry quickly (within 24 hours or preferably within an hour)?
- Were they prepared and do they have a good process for the initial discovery discussion?
- Do they just try and “sell” you on the process or are they vetting you as well?
- Can you rate their level of productivity, how well they define their approach and are they transparent about some of the challenges (all businesses face them)?
Final thoughts
Most franchise brands are not big brands. Choosing the right franchise brand isn’t just about picking a recognizable name or one with the best financials. It’s about finding a brand that aligns with your values, skills, and business goals. By thoroughly understanding the brand, ensuring a good fit, evaluating the support systems, and fostering a strong relationship with the franchisor, you’re positioning yourself for success in the franchise world.
