How Should I Evaluate a Franchise Opportunity?

min read
Opinions expressed by Entrepreneur contributors are their own.
Especially in today's tough market, you need to pay attention to the dollars side of the business. Start up financing is virtually nonexistent, so you'll need to define a "reasonable" investment pretty much from personal resources that you currently have available. Figuring out what is a "reasonable" income and a "reasonable" time frame to accomplish this income is also a matter of personal determination. It is essential that you balance these two considerations so that you have sufficient resources to make the initial investment and also pay for your lifestyle while waiting for the business income to grow.

Finding a franchisee role that suits you requires some thought prior to beginning your investigations. You need to figure out what you like doing in a business role, what you're good at, what you hate doing or aren't good at, what hours you want to work, what sorts and numbers of employees you are comfortable managing, and other workstyle preferences. There are many factors involved in forming the franchisee role in any business, so you need to ask lots of questions to determine a typical "day in the life" of a franchisee before buying any franchise.

For more on sizing up a franchise, check out the tips and advice on Entrepreneur's How to Buy a Franchise page.
More from Entrepreneur
Entrepreneur Select: A Fund For Entrepreneurs, By Entrepreneurs

Entrepreneurs require more than just money, which is why we aim to empower you, as well as act as a catalyst for value creation.

Entrepreneur Insider members enjoy exclusive access to business resources for just $5/mo:
  • Premium articles, videos, and webinars
  • An ad-free experience
  • A weekly newsletter
  • Bonus: A FREE 1-year Entrepreneur magazine subscription delivered directly to you
Make sure you’re covered for physical injuries or property damage at work by
  • Providing us with basic information about your business
  • Verifying details about your business with one of our specialists
  • Speaking with an agent who is specifically suited to insure your business

Latest on Entrepreneur