How do I evaluate a franchise's chances of financial success?

min read
Opinions expressed by Entrepreneur contributors are their own.
This is the 64 dollar question for all prospective franchisees but you have a huge advantage since you're looking at the purchase of an existing franchise unit with an established track record.  Check the historical financial results carefully.  Make sure you look at trend data over the past few years and not just how it did most recently - find out if it is still growing and thriving.  The company you're looking at has a wonderful track record over a very long term of existence and that should help your confidence.  Find more detailed info about buying an existing franchise in the archived articles I've written at Entrepreneur.com.

More from Entrepreneur

Get heaping discounts to books you love delivered straight to your inbox. We’ll feature a different book each week and share exclusive deals you won’t find anywhere else.
Jumpstart Your Business. Entrepreneur Insider is your all-access pass to the skills, experts, and network you need to get your business off the ground—or take it to the next level.
Create your business plan in half the time with twice the impact using Entrepreneur's BIZ PLANNING PLUS powered by LivePlan. Try risk free for 60 days.

Latest on Entrepreneur