HOUSTON BUSINESS REVIEW

So You’ve Found a Franchise… Now What?
By Adrienne Leigh

Adrienne Leigh is the President of FranNet of Houston, a franchise consulting firm that provides coaching to clients who are exploring franchise opportunities. She has over 20 years of experience in franchising and entrepreneurial start-ups. Each week, she will provide comprehensive information on the $1.5 trillion franchise industry.You can reach Addrienne at 713-586-8836 or via email. To learn more about Adrienne Leigh, check out her here

Tools For Structurally Sound Decisions

Before you invest any money, FranNet recommends that you use our 4-Step Research Plan. These steps are designed to keep your decision making as simple as possible, by taking one small step at a time, yet allowing you to thoroughly evaluate a franchise! Provided you are researching no more than three franchise concepts simultaneously, you should be able to complete all steps in about four weeks.

Step One - Talk to the Franchisor

It's in your best interest to create a good impression. You want the franchisor to view you as a qualified and serious potential owner.

Review the materials provided by the franchisor and prepare questions. If the Uniform Franchise Offering Circular (UFOC) is not provided with the initial information package, ask for it during your next call. The UFOC is a legal document required by the Federal Trade Commission. This document provides all required disclosures, including a list of all franchisees.
Read the UFOC from cover to cover and compile a list of detailed questions for the franchisor to answer during your next call.

Step Two - Call and Visit Some Franchisees

Carefully target your list of franchisees to interview. Ask the franchisor which owners listed have similar backgrounds to you. Ask who the most successful owners are and which ones may be struggling. Once your list contains a good cross-section of the franchise community, begin your phone interviews using the following tips to guide your questions.

Call at least eight to ten franchisees and take careful notes. You may need to revise your list of questions as you go. If you receive the same answer from the first four to six franchisees, drop that question and perhaps add new ones that you've thought of.

Arrange to visit two or three franchisees at their place of business.

Once you have completed your calls and visits, ask yourself some key questions, e.g. Can I see myself doing this business? Will I enjoy it and be good at it? Am I more like the successful owners in the system or am I more like the ones who are struggling?

Now it's time for a gut check! Based on what you've learned from the people inside the business, does this franchise fit your skills, talents, interests, and finances?  Can you see yourself doing what the successful franchisees have done? Will this business help you achieve your goals and vision?
If you can answer YES to all of these questions, it's time to proceed to Step Three. If not, close the file and continue researching the other opportunities.

Step Three - Visit to the Franchisor

Many franchise companies refer to this visit as a Discovery Day. It is an opportunity for you to meet face-to-face with the key players; top management and all the departments, e.g. training, marketing, operations, accounting. On this visit you should decide whether you fit with their corporate culture, get your final questions answered and be able to answer a key question yourself "Are these the type of people that I want as my partners?"

Step Four - Consult with Professional Advisors