When searching for franchise opportunities, you’ll discover a range of brands spanning various industries. Like any investment, you’ll want to assess your options and feel confident in your decision-making. Conducting due diligence prior to investing can help you feel better prepared for the future.

To help you sift through your potential options, we’ve compiled signals that typically indicate a strong franchise brand.

1. LONGEVITY & GROWTH

When determining which franchise to invest in, some may be tempted to choose a flashy, trendy brand that has caught consumers’ attention, believing that this can offer a competitive advantage when entering a crowded market. However, it’s important to recognize that a franchise’s strength also lies in its longevity and growth, along with its ability to attract new customers.

While new franchise brands can still be successful, strong and established franchise brands have typically invested significant time and effort in building a loyal customer base, developing their business model, and producing products and/or services that meet customer demand. Additionally, they can prove that their efforts have resulted in ongoing growth with recent store openings, annual sales growth, profitability, and more.

When researching franchise opportunities, finding brands that share their track record, the ongoing optimizations made to the business model, and the developments made over time can all be indicators that the brand has a solid approach to franchising. Ideally, you can find this material on the franchise brand’s website or upon requesting franchise material; obtaining this insight can offer prospective franchisees greater confidence prior to investing. While trendy franchises may seem exciting, it is essential not to overlook the value that long-standing franchise brands can provide.

2. ROBUST TRAINING & SUPPORT

All franchise systems will offer their franchisees some degree of training, which you will find disclosed in Item 11 of the franchise’s Franchise Disclosure Document. However, just because the training exists does not mean it is extensive or effective enough to provide the confidence a franchisee needs prior to opening, and throughout operations. A strong franchise system knows that when their franchisees are successful, they’re successful; that starts with equipping franchisees with the knowledge and hard skills necessary to successfully carry out the business model.

But how much training is considered enough? What makes one franchise’s training stand out from another? The amount is subjective, and no federal law dictates the number of training hours a franchisor must provide. However, you can often tell simply by reading their training offering on their website or franchise material how in-depth they go about their offerings – a franchising green flag from a strong franchise brand – or whether it’s a brief mention. With this insight, you can then compare franchise systems and see what one franchise provides that another does not.

If a franchise brand does not answer your training questions with easily accessible, upfront details about the support offered, it could be a sign that training is not of significant importance in their franchise offering. Transparency is another aspect of a strong franchise brand.

Often, a key indicator of a strong franchise brand is the ongoing support that corresponds with the initial training. Does the franchise system offer additional guidance (e.g., webinars, support material, etc.) once a franchisee’s location is up and running? Do they provide ongoing communication and guidance to franchisees? How often do they check in or visit? Is there a sense of togetherness in their franchise network or does it come across that their franchisees are islands once their locations open? Answering these questions can help determine the strength of a franchise brand’s training and support.

It is also important to thoroughly review the specific areas that a franchise brand covers in their training and the support they offer after opening. A strong franchise brand will cover a wide range of areas, such as marketing, customer management, and sales. They will also provide technology upgrades, training materials for a franchisee’s team, and more to help set a franchisee up for success.

3. A COMPETITIVE ADVANTAGE

Several factors contribute to a franchise business’s success. One key factor is its unique value proposition (UVP), which sets it apart from the competition and provides the reason(s) why customers should choose it over competitors. A strong franchise brand has typically conducted comprehensive consumer and market research to understand consumer needs and other brands’ offerings within the same industry. This research then informs product/service development that differentiates the franchise from others and effectively meets the identified consumer needs.

Investing in a strong franchise brand that offers a competitive advantage not offered by other businesses can be beneficial, especially knowing that with your investment, you’ll stand out in your community and within the market. A strong franchise brand with a UVP should clearly communicate how it stands out, offering valuable insight into its position within its industry.

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4. EXPERIENCED SUPPORT TEAM

Franchises vary in size, and so do their franchise teams. However, the presence of a support team to cover various aspects of the franchising journey can instill confidence in franchisees and is often a clear indicator of the brand’s strength.

A well-established support team can demonstrate the franchisor’s commitment to offering franchisee support at multiple checkpoints. The result is a greater sense of security in the franchisee’s investment and, eventually, in their role. A knowledgeable support team will be there for the initial stages and onward, assisting with the various aspects of running a franchise (which will vary depending on the franchise).

If a franchise brand doesn’t provide indicators of a franchising support team or you find the breadth of their support does not cover a variety of areas (e.g., marketing, real estate, operations, etc.), it may be something to inquire about with the franchisor if you choose to pursue the opportunity to ensure you feel supported at every step of your journey.

5. FRANCHISEE SATISFACTION

Whether you are a first-time franchisee or have a portfolio of franchise locations, each franchise brand you encounter is a brand-new experience. Therefore, it is critical to do your due diligence, which can include asking to connect with current franchisees of a brand and/or searching for testimonials.

Satisfied franchisees are a telling indicator of a strong franchise brand. Knowing that franchisees feel supported and are successful in their role can indicate that the franchisor has fulfilled its commitment to providing ongoing support and opportunities for success.

Meeting franchisees before becoming one can be helpful. However, if this is not possible or you’re looking to supplement this, a strong franchise brand will likely share franchisee testimonials on their website or in their franchise materials. There, you can gain firsthand insight into the role you’re considering and hear from those who have already started this journey. It can give you confidence that you are entering a strong network of franchisees, providing a family-like environment to help you feel supported by not only your franchising team but also your peers.

FRANCHISE OPPORTUNITIES WITH DOGTOPIA

Dogtopia is the largest and leading provider of dog daycare in North America. With strong differentiators allowing us to stand out in the booming pet industry, we offer our network of franchisees a variety of opportunities for success. If you are interested in bringing a Dogtopia daycare to your community, contact us today using our online inquiry form.