When seeking the best franchises to buy into, there is no shortage of options. But, how do you really know what is a good franchise to own or know what are the best places to franchise? Or, more importantly, how can you help avoid investing in a bad franchise deal?
Here are 5 Tips nobody told you before about how to make the best franchise investment!
1) Find out what type of support is offered. Mostly every food franchise will claim they offer support, but what does that really mean and how much direct support will you receive from a franchise specialist? Will the company work with you to find an ideal location? Will they conduct a market feasibility study and put you in touch with experts in business planning, real estate, construction and financing? Do they have an operations team that will begin working with you well in advance of opening a store? Choose a franchise that has an established network of suppliers and distributors to obtain the best quality equipment and inventory at the best price.
2) Make sure you understand the total costs involved, and if the brand negotiates the costs and fees. Who pays for furniture, fixtures, and equipment, or facility improvements? Is training included or does it cost extra? What percentage of revenue or profit is paid in royalty to the franchisor?
3) Ask if they are FTC Compliant. The Federal Trade Commission (FTC) Franchise Rule gives prospective purchasers of franchises the material information they need to weigh the risks and benefits of such an investment. The Rule requires franchisors to provide all potential franchisees with a disclosure document containing 23 specific items of information about the offered franchise, its officers, and other franchisees. 4) Before you start, consider taking a quiz offered by the International Franchise Association about your comfort level with risk and independence, which can help you avoid picking the wrong type of operation for you. And decide what is important to you, such as finding the best franchise with low investment, or possibly the best places to franchise.
5) Find a brand in a growing market segment, and that is good at marketing and social media. For example, the fast-casual concept and Mexican food are among the growing market segments and can represent some of the hottest franchise opportunities. Find out if they offer customized marketing plans for each location, designed to support successful restaurant openings and maintain awareness? Is there a professional, dedicated marketing agency for the brand? Do they develop campaigns, and promotions and have digital advertising in your region such as on Facebook, Instagram, and Google, for example?
Following these tips and asking the right questions will help you steer clear of an operation that isn’t ready to support your business goals. A franchise from Taco Maker Mexican Grill is a great investment opportunity, not only because they believe in these tips, but also because they encourage its investor to seek all the help and information they need. For more information on Taco Maker Mexican Grill’s franchises, or their franchise process, please click here.