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How To Choose Your Franchise

How To Choose Your Franchise

As you will know, the American franchise model was started by McDonald’s, and since then, thousands of brands have followed suit. Over the years, brands that became successful domestically chose to expand beyond the geographical boundaries of North America. First, they went north to Canada and south to Mexico. Then they went world-wide to tap new markets for growth. Today, global franchising is the new frontier for growth and the primary test of a brand’s level of success.

As it turns out, opening most unit franchises is a reasonably smooth process because once a domestic franchise system has proved itself in actual practice domestically, what works well in one country will often, though not always, work in another. Discovering what makes the model work in one market and anticipating what fine tuning will be necessary to make it work in another is the job of the global franchise marketer. Before jumping into any franchise opportunity, it’s important to take a few steps back and carefully consider what you are trying to do. We all know what the goal is: a long-term, successful money-making venture that’s not laden with legal and financial risks and will produce, or will likely produce in the foreseeable future, a favorable return on investment. And there are the ordinary questions to ask:

  • Can you afford the financial commitment?
  • Can you afford the time commitment?
  • Can you manage, financially and emotionally, all the attendant risks?
  • Do you have the experience necessary to operate this business or at least the ability to hire someone who can?

Once you have at least some idea of what your capacities are, don’t pick the kind of business you think you want. Instead, take your time, examine the field and start by first eliminating all of the business models you’re sure you don’t want. Working from that short list, look at types of businesses that interest you, favor your organisation and are affordable.


Leisure: This category of franchise includes concepts like trampoline courts, adult gyms and fitness ideas, children’s fitness, rock climbing, etc. For several of these, the start-up cost is higher than average owing to aspects like build-out and insurance.

Hospitality: This is an arm of the service industry with fields such as lodging, restaurants, tour operators and more. Prior to pursuing a business in the category, it’s important to know that the industry itself is dependent on disposable income and the amount of free time people have. Additionally, try to make various reservations at a franchised hotel in the city you’d like to open in to see how inundated the market is and price points for the room.

Care: Right now, the senior care industry is booming worldwide for a multitude of reasons. First and foremost, baby boomers’ parents are living longer. As people are living longer, healthier lives they may not be ill, but may require assistance with basic things such as housework, cooking, medication reminders, etc. A lot of people enter the industry after having a negative experience with their own loved one and want to ensure others receive top-quality care. Generally, the start-up costs for this industry are on the lower end of the spectrum.

Services: The service industry includes businesses such as pool care, pest control, plumbing and pet grooming. The majority of people who pursue businesses in this category see a lack of quality service in their community. Because you and your team are working out of people’s homes, all staff need to be extensively screened, licensed and bonded.

Health & Beauty: Businesses in this category include day spas, beauty parlors, body waxing centers, laser hair removal facilities, tanning salons and more. Franchisors will generally offer extensive training on every service offered.

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