With the wide variety of franchise opportunities available, there is a wealth of choice for any prospective franchisee. As an already robust industry in Canada, the world of franchising just keeps getting bigger – the annual print publication FranchiseCanada Directory has seen a 10 per cent year-over-year increase in the number of company listing for the past five years!
Now, investing in a franchise system is not a decision to be taken lightly. Once you’ve signed on, that’s going to be your business for the length of your franchise agreement.
Know the signs of a successful franchise to look for before you sign on the dotted line. Here are a few important things to consider:
- Are they a Canadian Franchise Association (CFA) member? CFA members voluntarily follow a Code of Ethics requiring them to use fair and ethical business practices. All listed companies on LookForAFranchise.ca are CFA members!
- Is the concept unique? Evaluate the core products or services the franchise offers – how have they differentiated themselves from competitors to create a clearly defined market?
- Is the concept consistent? Look for consistency of operations, brand, product/service, etc. throughout the company and its locations. Consistency is an important hallmark of the franchise business model and one that consumers expect.
- How do they select franchisees to operate their locations? Good franchisors will be evaluating your fit within the system as you are doing the same. Make sure everyone is taking the time to ensure that joining the system will be beneficial for both sides.
Use these questions as a ‘jumping off point’ for your franchise investigations. Do your due diligence on any system you’re considering – the more information you have as you make your decision, the better.