Finding the Best Franchises to Buy

Finding the best franchises to buy isn’t an easy task. Even the top franchises with established track records like McDonald’s, Dunkin’ Donuts, and Jamba Juice can’t guarantee that you’ll succeed. Before you look for the best franchises to buy, it’s important to research both the industry you’re considering, and the specific companies who offer franchise opportunities.

Researching the best franchises to buy
With so many of the best franchises to buy, it can be difficult to select the right one. Start by narrowing down your options. First, consider which industries your natural interests and skills align with. Do you want a retail business or a professional services company? Do you prefer networking with other businesses or having daily interaction with consumers? It’s important to love what you do since that ensures you’ll focus on succeeding.

The financial health of the parent company is critical, and gives you an indication of the current demand for their products and services. Look at revenue trends, profits, and the number of locations opened and closed recently. The best franchises to buy should open at a sustainable rate – but not so fast as to tax their ability to support you.

Helpful tools for finding the best franchises to buy,
. Having a short list of industries to investigate lets you start looking at specific franchises. Call the major franchisors in those industries and request the Uniform Franchise Offering Circular (UFOC). The UFOC is a comprehensive report about the franchise program, financial and legal information, and sample franchise contracts. The UFOC offers a goldmine of information to help select the best franchises to buy.

The UFOC will also include information about litigation against the company and its executives. A big red flag to look for is any lawsuits filed by their own franchisees. This can indicate a company that may not deal honestly or fairly with its franchisees. Also, look for any suits against executives for fraud or deceptive business practices.

Of course, there are other sources you should turn to besides the UFOC. Read press coverage of the company, both for the news and to view how the public perceives the company. Check with the Better Business Bureau to see if these companies have outstanding consumer complaints. Even companies which seem like the best franchises to buy will have some complaints. That’s fine, but look for patterns of activity that seem troubling.

Be careful when doing your research – there are plenty of franchise opportunities that are either simply bad investments or deliberate frauds. Remember: if the opportunity seems to good to be true … it probably is. Any franchisor that asks for money before giving you the UFOC is breaking the law and could be a scam. Also, keep an eye out for trendy franchise concepts and fads – the best franchises to buy have solid business models and proven success, not just buzzwords and slick marketing materials.

Where to find the best small franchises
If you’re looking to purchase the best small franchises available, use BuyerZone’s free request for franchise quotes service. We’ll get you in contact with up to six different providers who will review your finances and business history, and recommend the legitimate opportunities that best fit your entrepreneurial spirit.