Trying to decide among a variety of franchise businesses and industries can seem like a daunting task for anyone new to the concept of franchising. However, by doing your homework and conducting franchise market research, you can help ensure you make the right decision. Here are a few simple steps to invest in the right local franchise options.
1. Begin with some kind of self-evaluation.
The International Franchise Association warns, “Sometimes people start a business because they think they’ll make a lot of money, only to find out that they do not enjoy the business. You should start a business in an industry that you will enjoy for the next 10 to 15 years.” This is a key to successful efforts aimed at market research franchise opportunities. So, ask yourself questions like What kind of hours do you want to work, what kinds of things are you good at? For a food franchise, do you enjoy cooking, or interacting with people? Also, consider your finances, your ability to get a loan, and how much money you want to make.
2. Check out the range of franchise options.
You might be surprised at the types of businesses that are franchised these days. We all know the big names in restaurant franchising. But, did you know that a fast-growing segment of franchising has been fast-casual Mexican restaurants?
3. Make a short list of possibilities and start researching them. According to an article by franchise expert Jeff Elgin in Entrepreneur magazine, you should try to select companies that will have territories available in your desired area. “From this list of companies, pick a few that seem most interesting or attractive to you based on your criteria identified,” Elgin writes. Also, make sure the franchisor provides a Franchisor Disclosure Document (FDD). This is required by the Federal Trade Commission and has important company information needed to make a decision.
4. Once you’ve selected a company, due diligence means learning everything you can about it.
If you can visit locations, do it. Consider working a day at the location if they owners allow. Conducting market research on how many potential customers are in your area, what need your product satisfies, or what trend does it address. Who are your competitors, what do they charge, and how will your business be unique?
5. Get as much help as you can.
This article is a primer on how to do market research for a franchise. Beyond this, the franchisor should have lots of support, but there are plenty of other resources, like the International Franchise Association, Franchise Direct and the Small Business Association, your local university or entrepreneur center for free advice and consulting services.
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.
