When you’re looking at prospective franchisors, you need to know what to look for. Keep these characteristics in mind as you do your research to find any franchise opportunities.

Well-managed franchisors have:

- A good product or service with a high reputation. The brand must be built on something solid.

- Broad geographic appeal. Your brand is worth more if more people across a wide area recognize it.

- Broad market appeal. The brand shouldn’t depend on a narrow or elite customer base.

- Growth potential. Sales and development shouldn’t be maxed out as you buy in.

- Utilization of trends, not fads. The brand must capitalize on upward trends, not fleeting fads.

- A well-developed support system. It’s in the franchisor’s best interests to see that each unit within the system is supported properly.

- Money. The franchisor must have enough capital to develop the system securely and at a healthy pace and still keep an eye on trends and market enhancements that can increase the value of the brand.

- Excellent training and ongoing support. Training and support are how franchisors convey their mission, operating system, and culture to their franchisees.

- Continual research and development. The franchisor is committed to offering the most up-to-date products and utilizing innovations within the system.

- A concern for individual unit economics. The franchisor should be committed to assist each unit to perform at its peak and attain profitability.

The successful franchisors will be able to meet these standards for most franchisees. (But remember both franchisees and franchisors must do their part.) Look for these criteria when you’re looking at franchise opportunities and franchise systems to buy into. If you’re thinking about turning your own business into a franchise, make sure you’ve covered these points, too. All the best!