What does a good business look like? More importantly, what makes a good franchise and how do you recognise a great opportunity? There is a lot of choice out there and it can sometimes be difficult to choose exactly the right fit, something which fulfils your ambitions while also matching your skill set.

Look at Your Finances

One of the first things you are going to need to decide is how much money you are will be able to put into the franchise. This can range from small amounts that are readily available to larger sums which may require you to go to a bank for a loan. It’s not just financing the initial startup that you have to consider but how you are going to operate in the short term while you get everything to a productive and profitable state.

Look at Yourself

Next you need to understand your own strengths and weaknesses. Are you going to be looking at a franchise in a sector you are already familiar with? Do you want to move in a completely different direction and have transferrable skills which can be used? What are you passionate about and can you find a franchise that somehow meets that passion? Another issue you need to consider is how much support you are going to get from those around you. Taking on a franchise is a big step and you’ll want those nearest and dearest to you to be fully on board.

Doing Your Research

Once you know what you are looking for, you can begin researching the market and looking at a range of different franchises. There are franchises for practically every type of business from the hospitality industry and services to management, recruitment and construction to name just a few. You can certainly use the internet to get a deeper understanding of the sector you are moving into if you are going for a complete change. The more knowledge you have about the product or service then the more likely you are to make good decisions when it comes to finding the right franchise.

Build a List

Building a list of potential franchise opportunities should be easy if you know where and what to look for because you have done your research. The next step is to cut down your list and carry out more specific research for your chosen business – that includes doing as much due diligence as possible such as directly contacting and talking to current franchisees.

While it might be an extra cost, it’s always a good idea to get the services of a franchise specialist who can help steer you in the right direction and also work with you to carry out that vital due diligence. You will also need to hire the services of a franchise solicitor to deal with any legal matters.

The biggest tip we can give for choosing the right franchise is to take your time. While you might be in a hurry to get up and running, it pays to make any decisions in the cold light of day. Always give yourself a cooling off period where you can weigh the pros and cons before entering into a franchise agreement. After all, getting it wrong can prove to be an expensive mistake.

On paper, it sounds pretty simple. You have a good business model, you decide to franchise, and you take people on board as franchisees who want to help your company grow. While many franchisors succeed in attracting just the right person to their business, others aren’t so lucky.

The rise in franchise resales could be symptomatic of a failure to find the best people, particularly when it occurs within just a few months of taking on a franchise in the first place. While most consultants would advise you need to keep going as a franchisee and get support rather than sell, many simply find themselves facing up to having made a bad decision in the first place.

Franchisees failing is not unusual. If you are a franchisor, however, you should be making every effort to ensure that this doesn’t happen. It not only impacts on the franchisee as an individual but can damage your brand if outlets fail. Your attempts to attract the right people are vital.

Creating a Strong Business

The first thing you need to understand is how ready your business is for a franchise model. Have you reached the stage when it’s a viable option or is it still a little too early? Is your business model replicable outside of its existing form? What processes do you need to put in place to ensure franchising success and do you have the budget and team to carry it through? All these questions need to be answered before you go ahead and put your brand up as an attractive business that others will want to get involved with.

Choosing the Right Franchisee

The selection process is key if you want to be sure that you get the best franchisees. That means having an intrinsic understanding of what is needed to succeed in your business. It’s not simply a matter of the applicant having the money to invest. Do they have the other qualities that you are looking for? Are they likely to stick around and make a success of it or bail out at the first sign of trouble? How are they looking to develop and evolve and what impact will that have on your franchise?

In the many cases, businesses simply don’t have the experience or processes in place to make good selections when it comes to franchising. Using a franchise consultancy that has experience is the best option and can greatly reduce your chances of making a mistake in the selection process. You need to be choosy here – it benefits no one if your business opts for a franchisee who isn’t going to last the distance.

Support for Franchisees

Finally, the other major factor in ensuring that franchisees don’t drop out is the provision of training and support. Hopefully, not only is the franchise buyer coming into a business that has a strong and successful track record but they also have access to the support and guidance they need to make their investment worthwhile. Again, it pays to liaise with a franchise consultancy who will be able to guide you through what is needed and what works.

Finding a ‘good egg’ is not a complicated process. It does, however, require a good deal of focus and work to put in place the recruitment and retention measures that ensure you get the right person and helps you deliver the support that keeps them on board.