15 Signs of a Good Franchise System

We all know it is important to do your due diligence before buying a franchise. In a previous post, we talked about questions to ask the franchisor. How do you evaluate what they are telling you and what you are reading in the FDD? Here are 15 signs that the franchise system you are looking at is a sound investment.

1. Franchise is opening stores at a steady pace and growing same store sales.
2. The customers give rave reviews about the franchise’s products / services.
3. There are number of franchisees that have been there for a long time.
4. Franchisor regularly introduces new products and services.
5. Franchisor has regular meetings to get feedback from franchisees.
6. Franchisor does not delve into every minute detail of operations.
7. Franchisor gives flexibility to franchisees for local marketing and advertising.
8. Turnover among existing franchisees – either through business sale or shutdown is low.
9. Franchisees have easy access via email, phone, etc. to management at the franchise office.
10. The area supervisor from the franchise spends time with you during store visit and listens to your concerns.
11. Franchisor does not change store procedures and rules for franchisees frequently.
12. Franchisor visits the franchisee stores on a regular basis and provides improvement suggestions.
13. Franchisor is not opening stores in the close proximity of existing ones.
14. The prices charged for mandatory items from commissary are in line with market.
15. The franchise provides reports on a regular basis with the details on how they are performing at individual, regional and national levels.

Meta-Franchise Consulting can help you figure out which franchise systems fit your requirements AND possess these positive attributes.