The difference between a franchisor and a franchisee is that a franchisee will usually pay a set amount upfront and the royalties as they do business to use the franchisor’s processes, name, and get support from them. There are benefits to both parties for this relationship, but it’s important that you pick the right franchisor for your business in order to be successful.
Look at who has been expanding the last few years.
You wouldn’t want to franchise from a company that hasn’t been doing well in 15 years – on the contrary, focus on franchises that are rising stars or have had consistent success in the specific area you want to specialize in.
Find out how the franchise offers support to their franchisees.
If a company is the best financial business in the world but never shares its rules for success with its franchisees, then choosing them is worthless. Find a franchisor that values its franchisees and sets them up for success by offering ongoing training and support systems.
Determine if your personality works with the franchisor.
Some franchises are extremely strict with their process steps, while others are a bit more relaxed. You want to ensure your personality fits in with the overall branding people associate with the franchisor you pick – so you want to make sure you pick one that you’ll be proud to be a part of.
A franchisor and a franchisee should have a collaborative relationship. We encourage you to do your research before settling on any franchisor, and ensure you are both a perfect fit for one another!