IFA’s Criteria for Evaluating Franchise Opportunities
The International Franchise Association recommends considering the following factors before choosing a franchise opportunity:
- How much money will this franchise cost before it becomes profitable?
- Can I afford to buy this franchise?
- Can I make enough money to make the investment worth my time and energy?
- Do you have the technical skills or experience to manage the franchise?
- Do you have the business skills to manage the franchise?
- Is there enough demand in your area for the franchisor’s products or services?
- Is the demand year-long or seasonal?
- Will the demand grow in the future?
- Does the product or service generate repeat business?
- How much competition do you have, including other franchisees?
- Are the competing companies/franchises well established?
- Do they offer the same products and services at the same or lower prices?
- Is there a specialty or niche you can capture?
- How well known is the franchise name?
- Does it have a reputation for quality?
- Have any consumers filed complaints with the local Better Business Bureau?
Training and Support:
- What kind and how much training and support does the franchisor provide?
- Do existing franchisees find this level of training and support adequate?
- Has the franchisor been in business long enough to have established the type of business strength you are seeking?
- Is the franchisor planning to grow at a rate that is sustainable?
More information and resources are available from the IFA website.
Sean Kelly is a 20 year veteran of the franchise industry, and founder of the
award-winning marketing firm IdeaFarm. In 2006, he founded the FranBest franchise network, best franchise opportunities, the top new franchises, franchise marketing, franchise public relations and small business marketing. Contact
him at seankelly[at]ideafarm.net.