You’ve decided to explore business ownership through franchising. Your finances are in a good place, and you’re ready to take the next step. Maybe you’re aiming for financial independence, or you’re thinking long term about building a business portfolio. Either way, franchising feels like the right direction.
You’ve likely come across a wide range of opinions. There are glowing success stories, serious warnings, aggressive sales pitches, and a lot of noise in between. With so much information out there, it can be difficult to sort out what’s useful and what’s not. The goal is to look past the buzz and focus on what protects your time, your investment, and your goals.
What should you be paying attention to? What makes one franchise worth it and another not?
This guide will help you evaluate a franchise with clarity and confidence. You’ll learn what to review, what to ask, and what signs to take seriously. Whether you’re early in your search or narrowing down a few options, this process gives you a practical way to move forward on solid ground.
Understand the Franchise Model
Before reviewing a specific franchise, it’s important to understand how the business model works. Franchising gives you the right to operate under an established brand using a proven system. In return, you pay fees and follow certain rules that maintain consistency across all locations.
According to the International Franchise Association, a typical franchise agreement includes a one-time franchise fee, ongoing royalty payments, and access to support, training, and marketing systems. You own your business, but you operate within the structure set by the franchisor.
Some franchises are more hands-on than others. Some give you more control over day-to-day operations. Others follow a strict model where everything from pricing to uniforms is set for you. The key is to understand how much independence you want and whether the franchise you’re considering offers that.
You should also pay attention to how support is structured. Look at what kind of training is offered, what kind of help you receive after opening, and whether there’s ongoing operational guidance. A strong franchise will be clear about what you’re getting in return for your fees.
Understanding the basics of how a franchise works will make the rest of the review process easier. It will help you ask better questions, spot limitations early, and figure out whether the model actually fits your goals.
Start with focused research
Once you’ve found a franchise or two that match your skills, interests, and budget, it’s time to dig deeper. Research helps you see beyond the brand name and into how the business works, what it takes to run it, and whether it’s a fit for you.
Ask the right questions
The more informed you are, the stronger your decision will be. These questions help you understand the full picture so you can move forward with clarity.
Industry
- Is the industry growing or changing in ways that matter?
- Are there any trends that could affect long-term success?
- Who are the leading competitors, and how does this brand compare?
Brand history
- How long has the company been in business?
- Has it faced major challenges or leadership changes?
- What have been its biggest wins or setbacks?
Current status
- What is the brand’s position in the market right now?
- What do customers and franchisees say about it?
- Are most locations profitable and stable?
Leadership
- Who leads the company, and how long have they been in place?
- Do they have a background in franchising or the industry?
- Is there a clear vision for the future?
Goals
- What are the brand’s short- and long-term goals?
- Are they expanding too quickly or growing steadily?
- Can the current system support those goals?
Products and services
- Are new products or services being developed?
- How do current offerings stack up against competitors?
- What does it cost to deliver them?
Research and development
- Does the brand invest in market research or testing?
- How often are new ideas introduced?
- Do changes reflect what customers actually want?
Operations
- What does a typical day running the business look like?
- How many employees are needed, and what are their roles?
- How hands-on is the owner expected to be?
Marketing
- What support does the franchisor provide for marketing?
- Is there a national plan or are you on your own locally?
- How are grand openings promoted?
Franchise experience
- How long has the brand been franchising?
- Do existing franchisees expand into more units?
- What’s the average timeline to open a second location?
Support
- Does the franchisor assist with site selection or buildout?
- Is there a Franchise Advisory Council or peer group?
- What happens when a franchise is underperforming?
Training
- What kind of training do new franchisees receive?
- How long does it last, and where is it held?
- Is training offered for your staff as well?
Timeline
- What happens after your application is submitted?
- When do you receive the Franchise Disclosure Document (FDD)?
- How long does it take to go from approval to opening?
Costs
- What is the total estimated investment to open?
- Are any parts of it eligible for financing?
- What royalties or fees are charged, and how are they calculated?
Where to look for answers
Now that you know what to ask, the next step is finding the answers. A lot of information will come directly from the franchisor, but not everything should. Strong research includes checking third-party sources and hearing directly from franchisees who’ve already gone through the process. Here’s where to look.
Franchise website
Most franchises have a section of their website dedicated to franchise opportunities. This usually includes a high-level overview of the business, investment details, and a way to contact the franchise development team. If you’re interested, reach out. They may send you a packet, schedule a call, or walk you through the next steps. Even if you’re still deciding, it helps to introduce yourself early.
Reputable publications
Business media can help you see how the franchise is positioned in the wider market. Look for articles in The Wall Street Journal, Inc., Fortune, or Entrepreneur. For franchise-specific insight, check Franchise Times, Multi-Unit Franchisee Magazine, or the International Franchise Association (IFA) website. These sources often cover trends, legal issues, and rankings that give you a broader view of the brand or industry.
Industry and franchise conferences
Franchise expos and trade shows are a great way to speak directly with brand reps and meet other entrepreneurs. You’ll find a mix of national brands, smaller concepts, and service providers. Conferences like the International Franchise Expo, Multi-Unit Franchising Conference, and the IFA Annual Convention offer the chance to ask detailed questions in person and compare several opportunities in one place.
Current franchisees
No one understands the business better than the people running it. Ask the franchisor for a list of current owners. Most will provide contact info after they’ve qualified you as a serious candidate. Set up a few conversations, and be direct. Ask about their experience, how the support holds up over time, what they wish they knew earlier, and whether they’d do it again. You’ll get honest, practical insight you won’t find anywhere else.
Review the FDD
Once you’ve made it through the early conversations and the brand considers you a qualified candidate, they’ll send over the Franchise Disclosure Document (FDD). This is a legal requirement and a key resource. It includes details on costs, support, financial performance, and franchisee contact info. It’s best to review it with a franchise attorney or accountant so you understand what’s there and what to ask about.
This part of the process takes time, but it’s worth it. The more effort you put into gathering solid information, the more confident you’ll feel when it’s time to make your decision.
Meet the Team and Make Your Decision
If everything checks out so far, the franchisor may invite you to meet their corporate team. This step is often called Discovery Day, though it may last more than one day depending on the brand.
You’ll meet people from operations, training, marketing, and leadership. These are the teams who will support you if you move forward, so it’s a good chance to see how the company operates behind the scenes. Pay attention to how they communicate, how transparent they are, and whether their answers line up with what you’ve already learned.
Use this visit to ask questions that go beyond the brochure. What challenges do most new franchisees face in the first year? What kind of hands-on support is provided after opening? What systems have they improved recently?
It’s also a chance to evaluate fit. Every franchise has its own pace, tone, and culture. Do you feel like you’d work well with the team? Are they giving you straight answers or pushing for a decision too quickly? Some people attend multiple Discovery Days before making a final choice, and that’s completely normal.
After the visit, take time to reflect. Revisit your original goals. Are you looking for more control over your schedule? A long-term path to financial growth? Something you can expand over time? Think about how this opportunity fits into that picture.
Make a short list of pros and cons. Identify what excites you, what concerns you, and what questions are still unanswered. If you’re leaning toward a yes, now’s the time to build your business plan and line up financing. Once everything’s in place, you’ll sign your agreement and begin the real work of launching your franchise.
Starting a franchise isn’t a small step, but with clear research and thoughtful decisions, it can be the right one. The more effort you put in now, the more prepared you’ll be when opening day arrives.
Source:
International Franchise Organization: https://www.franchise.org/franchising-overview/what-is-a-franchise/