Earlier, we posted “How do you know if this is a stable Franchise to buy,” where we talked about researching the franchise’s FDD (Franchise Disclosure Document) and the things that can be discovered inside of this disclosure. One of the things contained in the FDD is how many franchises have been opened. It is a important to look at the franchise growth, but remember,it is just one of many factors and the statistic needs to be read in context.
Many companies may exhibit slower franchise growth early on, while others take off rapidly and then level out. Each one is different and what constitutes strong growth is dependent on the franchisor’s goals, business model, and industry, among other things. Still, it is exciting to see a franchise that is moving forward and you can get a good sense of how successful they are, and will continue to be, by looking at the growth number, especially in conjunction with their stated goals.
Early on, you may not have access to the FDD, however. In today’s world, the internet provides many good clues and is an integral part of most kinds of research. Press releases, articles, and blog posts have become a standard alongside of the more in depth reviews. Here is one such post highlighting one of my favorite companies, a fast casual restaurant called Erbert and Gerbert’s http://www.qsrmagazine.com/news/erbert-gerbert-s-lays-out-big-plans-2015. Remember to look for actual numbers, as well as for plans and goals that the company has.
Of course, there is a lot to discover, and a lot to decipher, beyond the internet articles that can be found, and beyond just franchise growth. These articles are a good starting point, or good to add to your research along the way. Your franchise broker has access to a lot of information that you might not be aware of, or even think to look for. Keep in mind that we are looking, not only for a successful franchise for you, but also one that is going to be a good fit to your needs, goals, and style so that your individual success with that franchise is better assured.
Contact us now so that we can match you up with the right franchise!