As a potential new business owner, knowledge is the single greatest tool at your disposal.  From the very first moment you decide that you would like to look into franchise ownership, the more information you have, the better your chance of ultimate success.  With all of the available data out there, the task of research can seem daunting at first.  Just where do you begin your search for your ideal franchise?

Your greatest tool for initial research is the internet.  There is a vast storehouse of information at your fingertips, just waiting for you to pull it up.  It’s quick and it’s convenient.  After all, you’re already here reading this article.

Associations

It pays to start by looking at the big picture, then narrowing down your research.  Checking out the websites for the American Franchisee Association, the International Franchise Association and the American Association of Franchisees and Dealers will help get you started in the right direction.  These resources will not only help you get started in your search for the right franchisor, but offer a great deal of practical know-how to help you succeed in your business.

Research and Publications

A great deal of data has already been collected by knowledgeable and diligent professionals.  There is no need to devote an excessive amount of time tracking down the information that others have already assembled.  Most major financial publications (e.g. USA Today, Entrepreneur, Inc., etc.) offer an online presence.  These provide an excellent starting point.  Beyond those broad sweeping publication, there are a number of journals dedicated specifically to the area of franchising.  Such publications include Franchise World, and Franchise Times, Multi-Unit Franchisee, and Franchise UPDATE.

There are also a number of independent research companies out there.  These can provide invaluable insight into the franchising market.  Research tools such as FRANdata and FranSurvey can provide you with detailed and comprehensive overviews that can help guide your decision making process.

Government Sites

Government agencies also offer varying degrees of insight into franchising.  The Federal Trade Commission offers a great deal of information regarding franchising and how to protect yourself and your new business.  The Small Business Administration is also an excellent resource.  The SBA site provide practical and invaluable information regarding the intricacies of franchise ownership.  The SBA’s Franchise Registry is also an great tool when searching for a franchise and offers listings of businesses that are backed by the SBA’s loan guarantees.

Further Research

Once you have a good general view of the scope of the franchising landscape it is time to dig deeper.  The amount of information that you can glean using a good old-fashioned Boolean search engine is almost limitless.  Start with broad searches and work your way towards more refined searches as you hone in on a few select franchise.

Excellent sources for narrowing your search include franchise consultants and brokers , though be advised many (if not all) have their own agendas and may not have your best interest at heart.  Nevertheless, they can be valuable tools in selecting your franchise.  Researching specific franchisor websites can also provide you with some valuable information.  Also look into business association in your area and read up on franchise related blogs for more information.

It pays to be informed.  This is your business and its fate rests in your hands.  Leave no stone unturned and you vastly increase your chances for success.

The allure of franchise ownership is undeniable, and rightfully so.  For the investor looking to start up a new business, franchising offers some incredible benefits over independent business ownership.  However, all franchisors are not equal.  How does one ensure that he/she picks the right franchise for his/her individual business needs and goals?

What Are the Benefits?

Buying a franchise offers some distinctive advantages when compared to independent business.  These benefits give the franchise a much better chance of getting off on the right foot.  The support offered to franchise owners can help the business succeed in a stiffly competitive market or a troubled economy.

Franchisors want their franchises to succeed.  What is good for the individual franchises is good for the trademark company.  As such, any franchisor with an eye on the future offers some key tools to help their franchisees along.

Franchisors will often offer support from the very onset their relationship with the franchisee, helping in selecting location and offering training to help enable the franchisee to effectively run his/her business.  Many franchisors also offer basic training tools to assist the franchise owner in building a skilled and knowledgeable staff.

Almost all franchisors also offer marketing support.  This often comes in the forms of broad-sweeping advertising campaigns aimed at targeted demographic groups across the entirety of the franchisor’s territory.  Franchisors may also offer local marketing support and assist the franchise owner in the development of local promotional campaigns.

How to Pick a Winner

Not all franchisors offer the same level of support in all areas.  When first researching a company to determine its suitability to your needs as a franchise owner it is important to evaluate just what degree of support the franchisor offers.  It is then possible to weigh that against your own desires for autonomy and control of your business so that you can make an informed decision based on your own best interests.

You best source of information in making your decision is the Franchise Disclosure Document that the franchisor is legally obligated to provide to you.  This document will spell out exactly how much support you can expect to receive.  It will also tell you up front what will be required of you as a franchisee.  The FDD will also shed light into any ongoing issues within the franchise that you might need to be aware of in making your decision.

Don’t rely solely on the information presented in the FDD when making your decision.  It is wise to get the perspective of other franchise owners.  Having first-hand accounts from established franchise owners may present you with benefits and problems that are not specifically touched upon in the legal document.

Forewarned is Forearmed

Above all, when undertaking the franchise selection process it is crucial to put in the effort to dig deep and research.  A bit of legwork now can save you a lot of headache later.  Once you’ve signed a contract, you are committed.  The more knowledge you have going in, the better your chances of making a smart decision and signing on with a financial winner.