International Business Times Australia:
1. Buy the top franchise model in the industry i.e. if Pizza franchise – buy top franchise in the country (the criteria being, 3 -5 years of being number one).
2. If passionate founders are present – big YES.
3. Strict code of conduct and high operational standards – is there consistency in customer experience throughout the group?
4. Are franchisees considered as customers? Or is the franchisor looking at a franchisee as a glorified employee – don’t be shy – ask the franchisees.
5. Are more than the 20% making money (real good money) – otherwise it’s an average franchise – Be very sure you have the capability of being a superstar! Happy customers and profitable franchisees these are signs indicating the franchisor has his finger on the pulse! Unhappy franchisees and clients is a definite red signal.
6. Buy in before the big growth is realized – i.e. see the potential for the group and buy in before everyone wants in. No different from the stock market.
7. Is the franchisor operationally focused or customer-centric? If operationally focused – GET OUT.