Five Signs That You’re Getting A Good Franchise Business

Updated: October 24, 2022

Getting a business franchise is one of the ways that you can own a business.

While this can be very expensive, the things you get in return such as a turn-key operating system and high brand equity are usually worth it, because those will save you time and money in doing business development and setup, among others.

However, not all franchise businesses are the same – not just in terms of products, but also in the more important aspect of franchisee support.

So if you’re planning to buy a franchise business, here are five things you should also consider when deciding which one to choose.


They have happy franchisees

First and foremost, a good franchisor will allow you to talk with existing franchisees. Apart from arranging a meet-up, they’ll encourage you to visit several branches for you to observe and see for yourself how the business is profitable.

The franchise owner is people-oriented

The franchise officer should be able to arrange a meeting between you and the owner of the franchise, who in turn, must not be too busy to take some time in his or her schedule to meet you in person.

The franchisee manuals are up-to-date

The franchisor should have a comprehensive and up-to-date operations manual. This is a good sign that the business is doing well and that they’re keeping up with new processes and technologies in the market.

It’s not easy to get approved as a franchisee

It’s actually a bad sign if all it takes to become a franchisee is to pay the fees. A good franchisor should not simply accept franchisees based on the money they can invest, but also takes into account the commitment and character of the franchisee.

The franchise agreement is open for discussion

The franchisor should be willing to explain to you all the details of the franchise agreement, and not just leave you to read and sign it. They should even allow you to consult a lawyer to discuss its terms.

And that’s it, the five signs that you’re getting a good franchise business. I hope you remember these pointers well, especially if you’re planning to buy a franchise soon.

For those who already own a franchise business, any other tips you can give? Please share them in the comments section below. Thanks.

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  1. When all is said and done a franchise is one of those easier ways of getting into business without the hassle of setting it up all on your own. As you aptly point out, if its set up right with solid systems, then it can be a gold mine. With all things though, one needs to research and compare different alternatives and when the deal is just too good, think twice :)

  2. I am looking for good franchise business that require minimal start up capital. What discourage me to engage like this because of very high franchise fee and royalty fee like Jollibee and other food chain.

  3. I have been a franchise officer once and I must say that I agree with the points stated here. A good relationship between the franchisor and franchisee must be evident at the onset of the business relationship since franchising can have a lot of ups and downs and you would want to receive continuous support from your franchisor.

    It is also very important that the franchisor scrutinizes the character of the franchisee. I have experienced troublesome franchisees because in the long run their business values did not match those of the franchisor and subsequently that of the company.

    Also, when getting a franchise, it is important that you are prepared to follow ALL the rules the franchisor sets forth – be it in financial obligations such as dues and fees or in marketing materials like promos and advertising materials. It is important for franchisors that your franchised outlet look just like the company-owned ones and very seldom would they allow deviations. As such there is very little room for creativity on your end or exploration.

  4. Thanks for this informative list, Bro Fitz. Getting a franchise is a part of our family’s long term plan and this one comes very handy for us. :)

  5. May I offer a tip from personal experience. Many years ago after college and as my first wonderful bride was finishing up her degree, we took jobs with a large and popular convenience store chain in the US.(hint, that chain is also here in the Philippines these days) They had a mix of Corp (corporation owned) and franchised stores.We became very interested in purchasing a franchise based on our early experience and even had our field rep over for dinner a couple times to explain more details to us.

    Over time we decided because of our work experience and certain things we personally observed at our store location, franchising with this company was not for us. In fairness, we knew several folks who were very happy with their investment. My advise, if you have the time and can find a way to work either in a Corp owned or franchise store from a company that you are considering joining, by all means do so. Even if you have to take a pay cut from a current position, it will be worth your time to really see and experience what you will be getting yourself into. What you see on the surface is not always what is underneath your shiny new oppertunity.

    Call this your DD (Due Diligence) that should be accomplished before any new investment. The bigger the price of the franchise, the more you should try before you buy. A convenience store, pizza chin or one of the “big bugger” shops is a sizable investment. If you suddenly have a change of heart and mind after the sale, you will likely not get much or anything back from all the fees you put up. So, proceed with caution

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