As an aspiring franchisee, one of the biggest decisions you will ever make is deciding in which franchise to invest. For those interested in resale franchise opportunities, there are several steps you must take and criteria to consider before making a final decision.
At Winmark - The Resale Company®, we know how important it is to do your due diligence when considering new opportunities. That’s why we’re sharing some tips on how to research resale franchise opportunities.
Start With the Basics
Running a business takes hard work, and that’s why it’s important to love what you do, especially if you’re the one who owns it. Begin the research process by making a list of the things that are most important to you in a franchise opportunity.
Perhaps it’s the training program, the company values, the past success rate or the liberty to add your own personal touch to your franchise location.
This list will help guide your research process, eliminate franchises that aren’t the best fit for you and recognize those that are.
You should also take a look at your local market and competitors to get a better idea of what opportunities may be a good fit for the community and where it may make sense to open a store.
Utilize Your Resources
There are many helpful resources in the world of franchising - from online publications and podcasts to virtual communities and in-person conferences.
Take a look at what other people have to say about their experiences. Franchise trades have great tips for getting started as a franchisee, and there are plenty of online lists that break down everything you need to know before investing in a franchise.
You should also utilize your current connections and networking opportunities. Professional social platforms like LinkedIn can help you meet others in the franchising industry or even franchisees from the specific franchisor opportunity you’re exploring, who can serve as first-hand resources for any questions you may have.
Take A Look At The Track Record
Without a doubt, one tell-tale sign of an excellent franchise opportunity is being able to showcase a strong track record of success. This includes testimonials from current or past franchisees.
For instance, each of our Winmark brands, including Plato’s Closet®, Once Upon A Child®, Play It Again Sports®, Style Encore® and Music Go Round®, has dozens of video testimonials from various franchisees, many of whom are multi-store owners - those who own several of our franchise locations, whether that is within the same brand or across different ones.
You should also take a look at past recognition. With previous mentions and recognitions by top publications like Forbes magazine, Entrepreneur magazine, Franchise Times and more, we’ve distinguished ourselves in a way that instills confidence in those who invest in one of our brands.
Additionally, take a look at the numbers, and not only the monetary ones. At Winmark®, our franchise renewal rate is over 97%. This speaks to the effort our corporate team puts into offering ongoing support for franchisees, even well after they have opened their stores.
Finally, one of the most important documents you will review when it comes to franchising is the Franchise Disclosure Document, which lists out all the important information about a franchise, including financials, processes and general expectations.
Meet With The Team
Of course, the best way to explore a potential opportunity is by meeting the people behind it. Take the time to gather adequate information before you jump to a decision. The best way to get your questions answered and to get a feel for the experience and kind of support you will receive as a franchisee is to schedule a meeting with the corporate team.
Almost all franchises host a Discovery Day, either in-person or virtually, where you have the opportunity to learn more about the franchise with other prospective franchisees. Discovery Day will take you through the process from start to finish - from the initial investment to location scouting, opening your store, training, recruiting and hiring, marketing and the overall franchisee support that is offered.
Take The Next Step In Your Franchise Opportunity
No matter what, always make sure you believe in the mission of the franchise company in which you are looking to invest. Take Winmark, for example, where our mission is to provide Resale for Everyone™ through our focus on sustainability and small business formation. Many individuals, including our own franchisees, turn to resale franchises because of their passion for sustainability and the desire to provide a much needed service and value to people in their community.
Contact us today to learn more about getting started with our resale franchise brands!