Franchise Characterisitics and Variables

When Entrepreneur.com ranks the top 500 franchises of the year, they hire an independent CPA to analyze a number of criteria to determine the strongest franchise opportunities.

As you look for the best franchise to fit with your personal goals, lifestyle, interests, investment capabilities and financial expectations be sure to do plenty of research.

Start by analyzing and comparing the following criteria for each franchise you are considering:

Financial Strength and Stability: How are the existing franchises preforming? How long should you expect as a franchisee to see a reasonable return on the initial investment?

Growth Rate: How many new franchises are adopted each year? What is the growth from one year to the next? What is the potential future growth for the franchise?

Size of the System: How many franchises are in operation across your state, the country or the world? Is the market saturated or is there room for growth?

Number of years in Business: The experience a franchisor can offer is one of the most valuable assests available to a franchisee. The franchisor should have at least three years of financial statements for your assessment.

Litigation History: Most businesses have a history of litigation. Read the UFOC for litigation disclosures, the less time a company spends in front of the court, the better.

Additional Research

Once you have narrowed down a list of potential franchises be sure to complete the following research: 

Read the UFOC: The Uniform Francise Offering Cirular which includes a detailed background on the company, financial assessments and franchisee agreements.

Speak with current franchisees: Are they satisfied with their investment and the structure of the franchise? Ask about the quality of the training and assistance programs.

Interview the management: Determine if the level of involvement from the corporate office matches your expectations. Would you like more guidance or more freedom?

If you would like to start researching the possibility of franchising with Camp Bow Wow, visit our franchise information page