Not only are you trying to research WHICH Franchise offers the best shot at success, but you’re trying to figure out WHAT to look for at the same time.  That can be very frustrating.  Well, be easy on yourself – perhaps you’ve never looked into Franchising before……and the Franchise Coach is here to help you.  Yes, there will be financial issues, business history, Franchisee experience and countless other logical matters for your HEAD to consider.  But, there will also be those between-the-lines “feel it in your gut” factors for your HEART to consider.  What’s important is that you get beyond the Franchise sales pitch and all the glossy paper, and seek out the true indicators of what makes a good Franchise relationship.  How?  Check out my list of 10 Ways to Pick a Franchise “Winner”: 

1. The Franchise Company is Responsive.  Here’s the deal:  If the Franchisor is responsive during the exploratory stages, chances are better that they’re always going to be responsive…. and that’s critical.  So, take note from the very first inquiry call.  Example:  You asked them about construction time-lines, and you get an e-mail about approved construction suppliers.  Did they just send you “Form Letter #24” instead of “#23”?!!  They might have been fast, but they weren’t listening!  But when the Franchisor responds quickly AND is truly laser-focused on your needs, those are signs that you might be dealing with a Franchise Winner. 
2. The Franchise Royalty and Fees Are Fair.  We all feel better aligning ourselves with “Givers” than with “Takers”….and that’s certainly so in Franchising.  So, take a hard look at the royalty & fee structure to decide which one you’re dealing with.  Perhaps there’s a good reason why one Franchise charges 8% royalty, while others in the same Category charge only 5-6%.  But perhaps there’s NOT a good reason, only greed.  A Winner leaves money on the table for their Franchisees.   
3. Existing Franchisees Stand Behind the Company.  Listen, Franchisees will always have routine complaints…..NO Franchise is perfect.  But you’ll quickly see that Winners have earned the respect of their Franchisees.  Franchisees need to know that the Franchise Company is “watching their back”.  To verify that, ask Franchisees this question:  “Do you feel that the Franchise is truly concerned with your success?”  If you get a positive response, and other good feedback as well……you have a potential Franchise Winner on your hands. 
4. The Franchise Keeps the “Brand” Strong.  Long-term, your success will be tied to the strength of the Franchise Brand MORE than most other factors.  So, look closely at how they treat their Brand.  Are the graphics fabulous?  Do all the elements revolve around the same idea/theme?  How often does this Franchise update and refresh the Brand look?  If they aren’t good at Branding now, WHO’S going to keep your franchise current, meaningful and successful in the future?  Answer – no one!
5. The Franchise Supports You All the Way Through to Opening.  Be leery of this overused pitch:  “Our Opening Manual provides everything you’ll need to get your Franchise open.”   The Franchise Winners never hide behind their Manuals.  They help you search for a good location, they help you negotiate your lease and they have a dedicated Store/Business Development Manager to help you deal with every element of design, bidding and construction.  This is critical hand-holding, and Winners invest in this type of support because they KNOW you’re going to need it.    
6. The Franchise Assures You the Lowest Store Opening Cost Possible.  You won’t believe this, but some Franchises make money on your Store Opening by collecting rebates on the items you buy from your required suppliers.  Franchise Winners don’t look for this type of money because they know this makes your store carrying cost harder to carry.  Successful Franchises bend over backwards to get you open at the lowest possible price, and never worry about padding their pockets.
7. The Franchise is a Strong Marketer.  I’m not saying the Franchise has to have a gazillion dollar national budget.  Truth is:  They can waste that as easily as not.  You want to see/feel a genuine commitment to (and understanding of) increasing sales in your area via Company marketing programs.  Look at past programs, and see if they maintain a consistent flow of marketing materials to the stores.  If marketing is all fancy talk, or they relegate the marketing totally to you…..run away. 
8. The Franchise Offers Stellar “Business” Training.
   Franchise Winners not only train you to run the functional operation, but they go the extra distance by training you how to generate sales, control costs, train your staff and address routine problems that may come up.  They train you to power a money-making franchise business, and not just serve as the Operations Manager. 
9. The Franchise is financially Strong.  Franchise Winners can show you how to make money, manage debt and invest in infrastructure, because that’s how they run their business.  Their Financial Statements (found in the FDD) will tell the tale.  So check them out with your accountant, and ask lots of questions.
10. The Franchise Units Make Money.  This is where the “rubber-meets-the-road”.  Many Franchises publish an “Earnings Claim” in their FDD, but these calculations are usually a “rig” and carved out to look good.  I highly recommend that you view Earnings Claims with a huge grain of salt.  Franchise Winners will insist that you verify sales and profit performance in the ONLY way possible….ask their Franchisees directly. 

The Key to finding a “Franchise Winner” is to investigate beneath the surface, and certainly beyond the sales rhetoric….and all that’s needed is a little determination and some research.  If that research leads you to a Franchise that delivers on the above 10 attributes, you just might have a “Franchise Winner” on your hands.  What happens after that?  I can’t say, and there are surely no guarantees…..but going with a Franchise Winner will assure you stronger Franchise Support every day.  And that will give you a huge market advantage.

Mark Kaplan is the Franchise Coach, and editor of BestFranchiseInformation.com. Mark is also the CEO of Great Wraps, Inc., a rapidly growing Franchisor of Hot Wrap & Grilled Sandwich Shops. Mark has spent over 20 years in Franchising, and he has a no-nonsense way of showing Entrepreneurs how to be successful in Franchising. Prior to Franchising, Mark championed major, national Brands for Corporate powerhouses like Coca-Cola, Nabisco Brands & Colgate Palmolive.