July 18, 2008

8 Signs That Point To A Franchisor's Strength

Nothing is as important as choosing the right franchisor while starting a franchise. Here are 8 signs that point to a great franchisor:

1. A good franchisor spends some years establishing his business before offering franchise business for sale. It will have more than one unit and a model unit where new franchisees are trained.
2. A good franchisor has a totally different department to handle people who want to buy a franchise from it. The franchisor knows that the main business and the franchise business are two different kinds of businesses. So, it handles them separately.
3. A good franchisor will provide an earning claim in the FDD. It shows that the franchisor is confident about the claim it is making in its franchise business for sale offers. Note, though, that failure to provide an earning claim doesn’t mean that a franchisor is unsavory; there may be a logical reason, such as it hasn’t been franchising long enough. Ask, though, why there isn’t an earning claim.
4. The best franchises in the business provide the option of protected territory in their franchise agreement. It makes sure that the franchisor is more interested in developing the franchise team rather than selling units. When protected territories are given, franchisees don’t have to compete with each other.
5. The training period of top franchisors generally last for about two weeks. The support system will include assistance in real estate selection and lease negotiation as well as grand opening help. Extensive support is also provided after the franchisees have settled down.
6. Another sign of a top franchise is that it provides financial assistance to the people starting a franchise with it. It can be third-party financial help or in-house financial assistance. Financial support for purchasing machines and other necessary equipment is also provided.
7. A good franchisor is a member of premier franchise associations like International Franchise Association. Moreover, it allows its franchisees to become members of franchisees’ associations.
8. Another sign of a great franchise business for sale offer is the legal history of the company. The company with minimum number of cases between the franchisor and the franchisees is always a good choice to buy a franchise from.

brandEXPANSION is the leading full-service franchise opportunity company. We maintain four websites—brandEXPANSION.com, FirstPrizeFranchise.com, brandexpansionhotpress.com and FranchiseUltraLounge.com—designed to help franchisors maximize their brand exposure and reach potential franchisees. Franchisees using these sites can gain more information about the franchise industry and more than 400 of the hottest concepts.

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