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If you’ve decided – or are trying to decide – to invest in a franchise, you’re likely to be overwhelmed by how many are available and how different they are from one another. It’s a good idea to investigate what it means to be a top franchise, which is the right leading franchise for your needs, and what your choice of business will mean for you. Let’s discuss what the measure of a top franchise is, and which would be best for your goals.
There are obvious advantages to selecting a leading franchise for your investment: you’ll have the resources of a large and successful company behind you, you’ll have the reassurance of knowing there’s a client base out there, and you’ll know that there’s a proven track record that can lead you to similar success.
Belonging to a top franchise provides a measure of reliability that can be exciting for new business owners eager to make good on their time and money. Brand recognition for star companies is high, and a client base is sure to form around a franchise people know and trust. They’ve found a business model that has worked in the past, and built a niche that makes consumers feel comfortable about the product or service they’re buying. As a business owner, these are all good things to have in your corner.
Franchises with that kind of power behind them recognize their own popularity, and will charge you a premium to operate them. You’ll likely find it difficult to turn over the initial investment in a timely fashion, since so much of the business you’ll be enjoying will be the result of the company’s work – not yours. It’s an expensive choice.
More than this, top franchises will have stringent rules about how operations are conducted, and will demand a high level of compliance with minute details of day-to-day business. They’ll be constantly on hand to assure that things are done their way, because top companies are very particular about how their brands are represented. You may find this stifling.
But the single biggest thing to watch out for is confusing overall franchise popularity with the niche for the product in your community. What works for America at large in a statistical sense may not work quite as well for you where you plan to do business. Levels of disposable income, the competition, and the cultural preferences of your locality are all factors to take into account when making your selection, and highly successful overall brands may be misleading in their appeal for you and your customers.
Many organizations attempt to rank the best franchises. Be advised that the measures of success are highly relative, so don’t take the rankings too seriously when making your choice. However, taken with a grain of salt, these listings can be a good place to start so you can have some idea of what brands are most popular.
You’ll find that companies like McDonald’s, Subway, and SuperCuts are routinely ranked in the upper echelon – which should be obvious to you if you’ve walked down a street somewhere in these United States.
Investing in a top brand definitely has a broad set of advantages, so don’t discount anything before you’ve done all your research. Just be sure to look out for your own interests: remember, a popular franchise doesn’t always mean the best return on your investment.