How to Conduct a Thorough Franchise Research Before Investing?

Franchise Research
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Owning a franchise or any business is a significant emotional, physical, and financial commitment. Before you dive into purchasing a franchise, be certain of your motivation for doing so. If you believe that owning a franchise is easier than owning a personal business, keep in mind that business ownership, in general, is fraught with difficulties. Simply because a franchise is popular does not mean it is the best fit for you. Do not skimp on your franchise research. Expect to spend several weeks on this process and keep the following criteria in mind:

Sales Record

When making an investment decision, never neglect the importance of examining the company’s past sales performance and future expectations. It is recommended that when you are ready, you choose a franchise with a track record of profitability.

Market Growth

Yes, you are making a significant financial commitment, and you should be cognizant of the nature of the business and its place in the market. The franchise you choose should be in a rising market if you want to succeed.

Corporate Responsibility

Modern entrepreneurs prefer to conduct business with companies committed to social responsibility. Look into social responsibility initiatives being undertaken by the franchisees you are considering.

Market Saturation

A little competition might be beneficial, but too much competition in close proximity can cause your business to fail. In addition to rival franchises, too many local firms in the same industry concentrated in a small geographic region can hurt sales.

Repeat Business

What is the possibility that the franchise will result in you doing business with them again? Consider a GNC franchise owner who hopes that the same consumers will return month after month to replenish their vitamin supplies with new ones.


When it comes to upselling products, McDonald’s is a shining example—having a burger? Why not get a cheeseburger? Would you enjoy some fries with that burger?

Franchise Cost

What are the fees, and what do you get in exchange for them? Make certain to ask pertinent questions. You should expect to hear that you will be provided with exceptional marketing and customer service.

See if you can arrange for an existing franchise owner to allow you to observe them in action. In franchise research, shadowing an existing franchise owner will help you better understand your enthusiasm for this business and whether you are capable of and want to pursue it.

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