What’s a Good Franchise to Buy? 7 Things to Look For
Are you wondering what’s a good franchise to buy? With more than 4,000 franchises in the lineup, picking a winner can be overwhelming. A Place At Home narrows the playing field with seven tips to streamline your search and help you score a wise franchise investment!
Franchising drives entrepreneurship by offering savvy investors a proven brand with training, technological tools, and ongoing support. To own a franchise, you’ll need to pay regular royalty fees based on the revenue you generate, but you’ll have access to a network of peers for guidance and a brand with built-in customer recognition.
Signs of a Strong Franchise
The franchise business model spans various industries from home maintenance and senior care services to accounting and fitness. To achieve franchising success, it’s important to consider the type of franchise you want to own. Do you want to own a storefront and manage employees, or would you prefer to be a solopreneur with a mobile business?
Deciding on the type of franchise you want to run will streamline your choices. But other important factors help determine if a franchise can help you build a business designed to withstand the test of time. Here are seven hallmarks of a strong franchise:
1. Market Demand
A good franchise has significant consumer interest for its products and services. Strong demand ensures you meet your sales quotas and is essential for profitability. For example, as the senior population ages, demand for senior care services is forecast to grow.
2. Growth Potential
Most franchises are designed with growth in mind. Selecting a franchise with a wide target audience, strong unit growth, and surging revenue trends improves the likelihood you’ll be able to grow your business over time. Simultaneously, it may not be one of the best franchises to invest in if the market is already saturated with similar businesses.
3. Initial Investment
The initial investment for a franchise includes franchise fees, the costs associated with opening a business, such as real estate, equipment, and supplies, as well as working capital to help sustain your business as you build a loyal customer base. A strong franchise provides transparency on the initial investment and is accessible to a wide array of potential franchisees. A realistic and well-justified investment shows that the franchisor has carefully balanced costs with value, making it attractive to investors. You can turn to the franchise disclosure document (FDD) to get specifics on the initial investment to open a franchise, including one-time and ongoing fees.
4. Territory
A good franchise has clearly defined territories to prevent internal competition. The territory must also be large enough to ensure each location has enough customers to deliver a solid return on investment. A single A Place At Home territory has 40,000 senior residents.
5. Training
You don’t need experience in the industry to run a thriving franchise. A good franchise should offer a comprehensive training program that combines a mix of virtual and in-person guidance to help you get started.
6. Ongoing Support
Franchise support should not stop once your business is up and running. Good franchises offer ongoing support to help local owners stay on top of industry trends and provide guidance if an issue arises.
7. Reputation
Choosing a franchise with a solid reputation can give your business a head start. A good franchise should have positive customer reviews and a history of minimal lawsuits. Talk to existing owners to gauge their satisfaction before you make a final decision.
Make a Difference with a Strong Franchise
What’s a good franchise to buy? We’ve got the answer. A Place At Home is a recognized and trusted name in the senior care industry. Our franchisees can utilize multiple revenue streams to drive profits and robust training to enhance operations.
We have strong franchisee satisfaction numbers and high growth potential. A Place At Home earned recognition as a Top Franchise for satisfaction from Franchise Business Review this year.
Fill out our franchise inquiry form to learn more about joining our strong franchise network.
