What makes a successful franchise?

Successful franchise systems. What you need to know.

Competition

What is the level of competition, nationally and in your community? How many franchise- and company-

owned outlets does the franchisor have in your area? How many competing companies sell the same or

similar products or services? Are these competing companies well established, with wide name

recognition in your community? Do they offer the same goods and services at the same or lower price?

 

Name Recognition

A primary reason for purchasing a franchise is the right to associate with the company’s brand. The more

people that recognize the name, the more customers will be drawn to your location. Make sure you

purchase a franchise that is popular in your area.

 

What makes a franchise successful?

Many franchisors operate well-established companies with years of experience both in selling goods or

services and in managing a franchise system. Some franchisors started by operating their own business.

There is no guarantee, however, that a successful entrepreneur can successfully manage a franchise

system.

 

Carefully consider how long the franchisor has managed a franchise system. Do you feel comfortable with

the franchisor’s expertise? If franchisors have little experience in managing a chain of franchises, their

promises of guidance, training and other support may be unreliable.

successful franchise

Market demand

Is there a demand for the franchisor’s products or services in your community? Is the demand seasonal?

For example, lawn and garden care or swimming pool maintenance may be profitable only in the spring or

summer. Is there likely to be a continuing demand for the products or services in the future? Is the

demand likely to be temporary, such as selling a fad food item? Does the product or service generate

repeat business?

If you are looking for a successful franchise, call us today at 778-676-3808. We also recommend you read this blog on Bon Macaron and look at the investment opportunity on the HART Legal website.

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