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What qualifies as an adept franchise???

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Be a new or an existing franchise buyer, the key research and analysis is an essential to identify a franchise business.

Be a new or an existing franchise buyer, the key research and analysis is an essential to identify a franchise business.

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  • 1. An Extensive Research Third Party Evaluation Determining if a specific franchise ‘is for you’ is a task that is complex, you might chose an industry that you are passionate about, knowledgeable about or simply the one that you find most profiteering. It is however important to assess and take precautions prior to purchasing a franchise. Understanding the Pros and Cons
  • 2. “AN OUNCE OF PREVENTION IS WORTH A POUND OF CURE.” BENJAMIN FRANKLIN An Extensive Research Third Party Evaluation Understanding the Pros and Cons
  • 3. You need to conduct an extensive research on numerous franchises, collect data on company profiles, financial trend, audited records, company litigation histories and the like. Conducting an analysis of year on year histories, financial trend and franchise performances is a crucial step. A comparative analysis between the competitors has to be a part of this research. As a buyer/franchisee you also need to learn about reviews by institutes recognised for their ranking in the respective industry. A critical analysis of the franchisor, the brand value and verification on the claims that a company makes should be a major step before selecting the franchise.
  • 4. Third party evaluation is also a recommended step for franchise buyer. Third party evaluation could be of various types, depending on the cost you are willing to incur. Third party could be a franchise consultant/broker, a lawyer, an adviser, a stakeholder of the said franchise, the existing franchisees and the like. An expert view of course is an important factor to make the decision of buying a franchise. The entire purpose of a third party evaluation is a second opinion. And such evaluation should focus on not just the analysis that you already have conducted but also bring out points that you have missed. Consulting with a franchise broker or a franchise consultant would be a good idea if you are purchasing a franchise for the first time. The franchise brokers/consultant has pre defined process for helping the budding entrepreneurs.
  • 5. A personal interview and an evaluation could be conducted on the basis of reviews, opinions provided by various stakeholders of the franchisor, such as partners, clients and other franchisees. Existing franchisees may share personal experience however getting opinions from more than two franchisees is considered appropriate. Secondary data from ranking authorities would also provide an agreeable sum of analysis.
  • 6. Franchise business too comes with its own pros and cons. The best way to deal with same is to acquire complete knowledge of the business and take complete precautions in avoiding a purchase of a franchise that you will not be able to cope with. The documents released by the franchisor provide detailed information on the history of operations, finances and performance. The terms and conditions are also shared with the prospective buyer. These documents could help you understand if you would be able to work under such terms and conditions.
  • 7. Sometimes franchisors may allow lax on their commitment to support the franchisee. At the same time there could have been poor decisions made by franchisor causing adverse effect in the franchisee. Hence to ensure that you buy in to a right franchise you need to understand the franchisor’s attitude towards the business and the franchisees. Studying same helps in understanding the relationship you will have with the franchisor and could accordingly be prepared
  • 8. Be a new or an existing franchise buyer, the key research and analysis is an essential to identify a franchise business that is most suitable to you and as well to determine if it is genuine. After carefully analysing all the above, if you still feel that you ‘fit the bill’; only then, you should enter into the contract.
  • 9. Corporate Headquarters #15,Sri Lakshmi Complex, 4th Floor, St. Marks Road, Bangalore - 560 001. India Tel: 91 80 6160 4545 e-mail: franchise@iihttechnologies.com web: www.iihttechnologies.com/

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