Thinking about buying a franchise? It’s a popular business model that appeals to savvy investors. Based on this year’s franchising economic outlook, published by the International Franchise Association (IFA), the overall number of franchise establishments in the U.S. will increase by almost 15,000 units, or 1.9%, to reach over 805,000 units this year.

Your investment in a franchise will place you in an industry that employs about 8.7 million people and is worth an estimated $860.1 billion in 2023. The sectors seeing the most growth? Service-based businesses, which are predicted to continue climbing this year and into the future. Something to keep in mind when selecting a franchise to own.

What to Look for in a Money-Making Franchise

The facts and figures prove that franchising is a strong model, but how do you choose the franchise that’s good for you personally, professionally, and financially? Take a look at these tips for evaluating a franchise so that you can choose a solid investment.

1. Strong business model: Look for a franchise with a proven and successful business model. Assess the franchisor’s track record, financial stability, and reputation in the industry. Consider how well the franchise system has performed in different locations and markets. Find out how long the brand has been in business and how many operating units there are.

2. Market demand: Evaluate the market demand for the products or services offered by the franchise. Research the target demographic, competition, and growth potential in the chosen location. Ensure that there is a sustainable customer base and a viable market for the franchise’s offerings.

3. Training and support: A reputable franchisor should provide comprehensive training and ongoing support to franchisees. Assess the quality and extent of the training program, marketing support, operational guidance, and assistance with site selection and setup. Strong support systems can greatly contribute to your success.

4. Profitability and financial projections: Review the brand’s financial information, including the initial investment costs, royalty fees, and potential earnings. Study the franchisor’s financial statements, including revenue and profit margins, and understand the financial projections provided by the franchisor. Consider the return on investment and the timeframe for recouping your initial investment.

5. Franchisee satisfaction: Reach out to existing franchisees within the system to gather insights on their experience. Ask about their profitability, challenges they’ve faced, and the level of support they receive from the franchisor. Franchisee satisfaction is a good indicator of the franchise’s potential for success.

6. Exclusive territory: Determine if the franchise offers exclusive territory rights, which can limit competition and help you establish a strong customer base without being overly saturated with other franchise units.

7. Brand reputation and marketing: Evaluate the franchise’s brand reputation and the effectiveness of its marketing strategies. A strong brand presence, marketing support, and national advertising campaigns can significantly contribute to customer acquisition and brand recognition.

8. Scalability and growth opportunities: Consider the potential for expansion and additional revenue streams within the franchise system. Assess whether the franchise offers multiple units, regional or national expansion possibilities, or diversification into related business areas.

9. Legal and contractual considerations: Carefully review the franchise agreement, disclosure documents, and any legal obligations associated with the franchise. Seek legal advice to ensure you understand the terms, obligations, and restrictions outlined in the contract.

10. Personal fit and passion: Choose a franchise that aligns with your interests, skills, and long-term goals. Running a successful franchise requires dedication, hard work, and a genuine passion for the business.

Remember, due diligence is essential before investing in a franchise. Analyze all available information, consult with professionals, and consider your own strengths and objectives to make an informed decision about the franchise opportunity that best suits your financial goals and personal aspirations.

Can You Make Money Owning a Franchise?

The bottom line is you want to ensure you’re putting yourself in the best situation to gain profit potential. Although franchising provides a bigger safety net than if you were to go at it alone as an independent business owner, there are no guarantees in any business. However, with proper evaluation, you can equip yourself with the best information possible to select a franchise suited for you.

At Wild Birds Unlimited, we have created a niche industry and are a leading wildlife franchise. We’ve been in the business of bringing people and nature together for more than 40 years. Our model is effective and strong, with more than 350 locations throughout North America. All our locations are designed to become a community resource on birding, offering the best products and services to help customers enjoy their love of bird feeding and bird watching.

As a business, we believe in financial transparency. Our goal is to help our owners experience a franchise profit and long-term growth. We provide comprehensive training to get your location up and running, and ongoing support to guide you through your ownership.

If joining our flock sounds like a money-making franchise choice you want to make, fill out our online form and come fly with us.