Franchising is an attractive prospect, but before you jump in head first, it pays to do your research and make sure you’ve landed on a franchise that suits your business goals and is equipped to lead you to success.
Step one of any franchise journey is research – research around the franchisors available to you and, once you’ve narrowed down your options, in-depth research into your chosen franchisor and what they can do for you.
Why is Franchise Research Important?
Even if you’re familiar with a particular brand name and think you know what kind of company you’re joining, it’s important to undertake thorough research into what it’s like being on the inside.
Your assumptions and image of the brand as a consumer may change once you start looking into how you’d function within the franchise system.
Franchises are known for being less risky than independent start-ups, but this doesn’t mean they’re without their challenges. Doing detailed research in the initial stages ensures you can gain a better understanding of the pros and cons and confront whether it’s a suitable venture.
Understanding the Franchise Business Model
If you are in the very initial stages of research, it can be a good idea to brush up on your knowledge about how the franchise model works. This ensures you’re up to date with any terms and basics before your research becomes more detailed.
Our guide to the franchise business model is a useful resource for those who want an overview of how it all works.
Understanding how the franchise system operates also gives you an early indication of the kind of requirements you will need to fulfil.
Market Research
Next, you’ll want to research who the market leaders are in your chosen industry and investment level. What are the opportunities here and are there any stand-out brands that you think you’d be a good fit for?
Sometimes it’s not always about going for the biggest, most well-known name, it’s about investing in a brand that aligns with your vision and even personal qualities.
Franchise Events & Conventions
Franchise expos, conventions and conferences offer a good opportunity for you to meet with various franchise representatives and network with other prospective franchisees.
Events like this can open you up to more opportunities or help solidify the route you’re thinking of going down.
What Makes a Good Franchise?
Once you’ve narrowed down your list of franchisors, it’s time to start your preliminary background checks. When looking into a franchise there are plenty of things you’ll want to consider to ensure it is a legitimate, secure and profitable option for you.
What you consider a ‘good’ franchise might differ from another prospective franchisee, but there are still several core qualities you’ll need to keep an eye out for no matter which industry you’re interested in.
- A proven history
- A transparent franchise agreement
- Appropriate and realistic fees/initial investment
- Well-documented systems
- Rigorous training and support programmes
- British Franchise Association membership
Researching Your Chosen Franchisor
When looking into a franchise you’re particularly interested in, there are a couple of obvious places to start. First, look at the various available online resources to get a feel for the values and reputation of the brand.
Look for website resources and FAQ pages to get a good sense of the practicalities involved in running your chosen franchise. For an outside perspective, searching for general reviews of the brand or accessing public information from places like Companies House allows you to get a broader picture of the company’s current standing.
Another key thing to look for is whether the franchisor is a member of the British Franchise Association. Having BFA membership highlights that the franchisor meets the association’s high standards for ethical franchising. This can go a long way in indicating the franchise’s quality and can make you feel more comfortable about investing with a franchise.
Get in Touch With the Franchisor
Once you’ve undertaken your own research and are feeling confident about a franchise, it’s time to get in touch directly. Opening up a dialogue allows you to ask all those more specific questions about profitability and expectations.
Arm yourself with our list of key questions to ask a franchisor and further your research.
If you and your franchisor both decide you’re a good fit, you’ll likely be invited to face-to-face meetings to learn more about the inner workings of the franchise and your role as a franchise partner.
Franchising With Esquires Coffee
As a coffee shop franchise with over 30 years' worth of experience, we’re keen to make the franchising journey as smooth as possible.
If you’re considering joining the coffee franchise world and would like to find out more about what we do, head over to our guide on why you should franchise with Esquires Coffee!
If you’ve already done your research on us and are ready for the next steps, please fill out a franchise application and we’ll be in touch.
