What is a top franchise to buy? It’s a question I often get asked, and the answer is a bit tricky.
It can be hard to rank franchises, as it can be quite subjective.
The best franchise to buy for one person may be the wrong choice for another.
People need to consider:
- their motivation for entering franchising,
- what they hope to achieve,
- what time commitment they want to invest,
- how much money they have to invest, and
- whether their personality is suited to franchising in general, and the particular franchise they are considering.
There is a range of different investment levels from around $10,000 up to $500,000 in start-up costs, and there would be strong franchise offers across the different investment levels.
It’s just a matter of matching the best franchise with the needs and wants of the potential franchisee.
Assess what ‘top franchise’ means to you
You need to assess what characteristics make your top franchise.
For example, a franchise might be a market leader, however may not provide the greatest return on investment.
In another franchise you may make a lot of money, but have to work 70 hours a week, and maybe you’re happy with that.
Is your top franchise one where you:
- gain the greatest return on investment
- achieve a healthy work-life balance
- achieve a passive income
- achieve financial freedom
- receive high levels of support
- benefit from flexibility in the system
- experience a strong franchisee network, who interact regularly and support each other
- enjoy a positive work culture
- receive the greatest market share
- work part-time or pick the days you work
- make a positive contribution to the environment and/or community
How do you find out if a franchise meets your requirements?
Speak to people, and ask the right questions. (We recommend some key questions to get you started in our free online pre-entry franchise education program, sponsored by the Australian Competition and Consumer Commission).
Speak to as many current and ex-franchisees as possible and find out about their experiences in the franchise.
Once you’ve narrowed your choices down, try and work in the potential franchise to get a real taste of what it would be like.
At the end of the day, the top franchise is the one which is best aligned with your goals for joining the franchise and meets your expectations.
You can discover which franchise/s they are by conducting thorough due diligence.
And if researching your top franchise sounds like too much work, then perhaps you’re not ready for franchising in the first place.
Unfortunately, there is no easy answer to what is a top franchise to buy.
To learn more about becoming a franchisee, do our free Franchisee Pre-entry Program kindly supported by the ACCC.