Franchises – When They’re Hot
When you’re considering the purchase of a franchise, you want to be sure the one you choose is “hot”. With so many opportunities out there, how do you know what’s hot and what’s not? Let’s take a look at a few indicators that may help you decide to jump into the fire!
Happiness in Numbers
The more the merrier when it comes to the sale of new franchise units. Franchisors are always on the lookout for new franchisees. New units mean new franchise fees and monthly royalty income for the franchisor. If a franchise concept sees a spike in franchise sales or shows steady growth in the opening of new units, it might be “hot”.
Locations, Locations, Locations
Do you see a franchise on every corner? When you travel, do you see the same franchise every place you go? Lots of locations mean lots of brand visibility and probably heightened consumer awareness of the products and services offered by said brand. If a franchise concept pops up just about everywhere, chances are it’s “hot”.
In the Spotlight
Some franchises get a lot of media attention and publicity; however, the reasons why may vary. Maybe they made a major contribution to a well known charity; or their annual earnings report just went public; or they just signed a major celebrity to their system. Regardless of why they are in the news…..they’re in the news and getting your attention. In your eyes, publicity is good and therefore, a franchise is “hot”.
Although these three reasons can certainly play a major role in determining which franchises are “hot” and ultimately which system you’ll join, there are a myriad of other reasons you may consider before stepping onto the coals!
Equating popularity to profitability is completely normal; however, not always an accurate assessment. Does the franchise concept you’re interested in have the potential of becoming a fad or does it have history and staying power? Is this franchise concept recession-proof; can it withstand and adapt to a fluctuating economy? Does this franchise concept meet a consumer need that you don’t foresee disappearing anytime soon? Are there too many locations nearby for you to really have a chance to be profitable?
All these questions and more are good things to ask before signing on the dotted line. And the great thing about a franchise system is you can ask actual franchisees, the ones who found the answers to their questions and have already taken the risk and are in business.
To learn more about franchise opportunities with High Touch High Tech, visit us online at ScienceMadeFunFranchise.net.