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The Value of Research

Find out who comprises your target market before opening your doors.
October 22, 2001
URL: http://www.entrepreneur.com/article/45518

Before you decide to buy a franchise, you need to determine the extent of the demand for its products or services. By systematically collecting, analyzing and interpreting market data, you can uncover key trends; form a better understanding of the franchise's market, customers and competitors, and make an educated decision about whether to purchase it. Those insights can help you answer questions such as the following:

If the research shows that demand is sufficient to support your prospective franchise, you can use the results to help find an ideal location and develop a start-up-marketing plan. Investing in market research before you buy will also help you organize information for prospective lenders.

And if your research reveals that customer demand for a franchised product or service is declining or non-existent, you'll avoid making an expensive, heartbreaking mistake.


Excerpted from Franchising 101, edited by Ann Dugan (Dearborn Trade Publishing)