When looking for a franchise opportunity, how can you tell whether the one you want is a strong

one? Here are 5 characteristics of a strong franchise opportunity that will help you know when you
have found something worth pursuing.

1) Location is favorable.

The phrase "location, location, location" originated for a reason. If the franchise is not in a location
that is easily accessible to a large number of people that need or desire its goods and services, it
may be difficult to achieve profitability no matter how good the business and marketing plans may
be.

2) Sales at existing locations show steady growth.

Businesses grow at different rates, but the businesses that are most likely to be profitable over a
long term are those that show steady growth, rather than a huge spike in sales in a short time
period. Trends come and go, so the huge spike today could turn into a freefall next month or next
year as customers get bored and move on to the next big thing. Finding a franchise that meets
customers’ ongoing needs is a better opportunity than jumping on a bandwagon that may not last
more than a few years.

3) Little competition for the same goods or services.

Some competition is not always a bad thing, since it can show steady demand. But finding a
relatively untapped market for needed goods and services will allow your franchise to gain maximum
sales. Some franchisees even try to find out what construction projects are scheduled in the area to
be sure that a similar business won’t pop up a year or two down the road.

4) Ample support from franchisor.

Finding out ahead of time what kind of support a franchisor will offer is a wise idea for any
franchisee. Strong franchise opportunities will include franchisor help with training, marketing and
wholesale pricing for supplies. Franchisees who have their own sources for some of these needs
may still find good opportunities outside these parameters, but typically, the more help given by the
franchisor, the better the chances for success.

5) Contract is simple to understand.

Franchise contracts are notoriously complex, sometimes spelling out in specific detail the business
practices franchisees are expected to follow. Having consistency across franchise locations helps
customers know what to expect and contributes to brand loyalty, so specificity isn’t always a bad
thing.