How to Choose the Right Location for Your Retail Franchise

Location, location, location isn’t just a common phrase, but the key to success. As a retail franchise owner, selecting the right location is one of the most important decisions you’ll make to ensure a successful business. A prime location ensures high foot traffic, easy access, and exposure to the right target audience. A well-chosen location will also give you a competitive edge in the market, as you may gain customers from the competition who aren’t as easily accessible.

By thoroughly researching and strategically selecting a location, you can maximize revenue, minimize risks, and create a strong foundation for sustained success.

Knowing how to choose the right business location can be the difference between failing and winning.

The Location of Your Franchise is Important

No matter how good you are with accounts, the success of a franchise can suffer if the location is unsuitable. If you’re not in a prime spot, your visibility is reduced, and as a consequence, so is your customer attraction. The brand will suffer, and your sales will decline. If a franchise is situated in an area with a strong demand for its products or services, it stands a better chance of thriving.

When choosing the location of your franchise, you must take into consideration demographics, competition, and accessibility. A spot near complementary businesses can boost sales, while a poorly chosen location can hinder growth.

Take note of the economic condition of the surrounding area – is it a place that is thriving and continuing to grow, or is it an area that is becoming less popular and doesn’t have high footfall? Your choice of location will impact brand visibility, customer convenience, and overall business sustainability.

When you know how to choose a retail location, you will enhance customer engagement and ensure a competitive advantage. Finding the right venue is one of the most critical decisions in launching a successful franchise.

What are the Most Important Franchise Location Requirements?

Target Market & Demographics

When determining your franchise location, you need to identify if the local demographics align with your target market. Will the local consumers want what you have to offer? Factors like age, income, and lifestyle influence who is most likely to buy your products or services. You also need to discover if the area has enough potential customers to sustain your business. Low foot traffic equals low sales potential. By ignoring demographics, you put yourself at risk of poor customer turnout and financial losses.

Foot Traffic & Visibility

A location that has a lot of exposure is essential for the success of a retail franchise. Areas that include shopping malls, high streets, or public transport stations increase exposure, providing guaranteed foot traffic. When selecting a spot, you have to consider how easy it is for customers to notice your store from the road or sidewalk. Poor visibility can lead to fewer walk-ins and reduced sales, whereas a well-placed franchise benefits from organic marketing and drives revenue without relying solely on advertising.

Competition & Complementary Businesses

The amount of competition in an area will determine how to choose your franchise location. Competition is healthy and indicates demand for the product or service, but if there are too many competitors in one place, it could lead to market saturation and make it hard to attract customers. Setting up shop near a complementary business (e.g., a coffee shop near a bookstore) is a great way to drive sales through common interests. Understanding the competitive landscape will help position your business strategically, ensuring customer appeal.

Accessibility & Parking

No one wants to walk miles in search of a shop or spend hours looking for a convenient parking space. Consumers want to start their shopping trip on a positive note, not feeling frustrated before the day has even started. You should be within easy reach of major roads, public transportation, or accessible by foot. Also, ample parking is a must, as limited or inconvenient parking can drive potential customers away.

A well-located franchise with easy entry, exit, and parking options will keep customers happy, keep them coming back, and ultimately boost your profits.

Cost & Lease Terms

The cost of your franchise location must align with your projected revenue to ensure you make a profit. High rent in a prime area may see you getting more traffic, but if you’re paying out more than you earn, the business will fail. Lease terms also play a crucial role—long-term commitments, rent increases, or hidden fees can impact financial stability. Consider flexible lease terms as they allow for future adjustments if the business grows or market conditions change. Factoring in both cost and lease agreements helps franchise owners secure a location that is profitable with low financial risks.

Zoning & Regulations

Zoning laws and regulations determine where a franchise can legally operate. Verifying if the location is zoned for your type of business and complies with local regulations will prevent you from facing legal issues, fines, or even forced closure. Certain areas may prohibit specific business types or impose restrictions on signage, operating hours, or renovations, so thorough research must be conducted. Additionally, local permits and licensing requirements must be met to ensure compliance. Understanding zoning laws will help you avoid costly setbacks and ensure smooth operations. When you select a location that aligns with legal requirements, it will be all systems go, and you can focus solely on growth.

Growth Potential & Economic Trends

Find a location that has the potential to grow, and you’ll hit the jackpot. Areas that have current or future development plans are the key to long-term success. A growing district means an increase in population and a rise in income levels, therefore more opportunities for customer purchases and higher sales. If you plan to build your franchise in an area with a declining economy or shrinking population, you may find that you struggle to sustain business.

By observing local economic trends (e.g., rising populations and job growth), you can choose a location positioned for expansion and profitability. Investing in a thriving area ensures business stability and long-term growth potential.

Brand Fit & Franchise Requirements

Brand fit is important when deciding on your franchise location. You will have to consider the minimum population size, proximity to competitors, and certain retail environments. These requirements are crucial to maintaining consistency and upholding the franchise’s image. Your chosen location must align with the brand’s identity and customer expectations, ensuring the store lives up to the franchise’s standards. Additionally, franchises often impose operational guidelines regarding layout, signage, and design. Choosing a location that meets these requirements ensures compliance, supports brand integrity, and maximizes customer engagement, leading to a successful and sustainable business.

In Conclusion

All business decisions are equally important, and the location is no exception. It’s not enough for the space to be the perfect size; it must meet certain requirements, be legally sound, and be easily accessible to potential customers. Don’t come unstuck at a crucial point because where you choose to set up shop hasn’t been thoroughly investigated. When research and due diligence are done correctly, finding the right spot for your retail franchise will be simple. Knowing how to choose the right location for your retail franchise in California or any part of the US will set you up for success.

Is a Fitness Franchise Right for You? Key Considerations and How to Start

Health and wellbeing is the smart place to put your money today. With the industry experiencing continued growth year on year, investing in a fitness franchise gives you access to a high-intent, established customer base.

Tapping into this rich market of health and wellness seekers will help your new franchise business grow far faster than if you were to begin from scratch. However, that doesn’t mean that purchasing a fitness franchise is an easy way to make an income. Owning a fitness franchise still takes a lot of hard work to bring those customers in initially – and keep them coming back.

Thankfully, many fitness franchise brands offer extensive support packages to help you get started. From using a well-established brand name to all-round business development support, there are extensive benefits to going down the fitness franchise route rather than setting up as an independent.

However, different fitness franchise brands offer varying levels of investment in you as a franchise owner. Choosing the wrong option could be a costly mistake that compromises your current capital. Therefore, before you make any decisions, it’s important to have all the facts so you can be certain that the fitness franchise route is right for you.

Is Owning a Gym Franchise Profitable?

Before finalizing any franchise purchase, it’s important to consider if this business aligns with your financial goals – put simply, is owning a fitness center profitable?

The answer to this will depend entirely on the franchise brand you choose, as well as the type (and extent) of support offered to franchisees. Whether you’re a first-time investor or expanding your portfolio in a new industry, start-up support is crucial to long-term success.

Understanding the support package of each potential franchise, and comparing these during the research phase, can lead to confusion as to which brand is offering the best value for your money. If you want to learn from the mistakes of others while successfully navigating the pitfalls of franchise ownership yourself, it’s a good idea to work alongside a franchise consulting team with extensive, up-to-date knowledge of the fitness industry.

With the right consultant team, you can benefit from unparalleled knowledge and experience – without making the most common, and often expensive, mistakes yourself.

Turning a fitness franchise into a profitable business is much easier and faster when you have the right support in place from the start. Some franchise owners are reporting revenues in millions of dollars, whilst others are in the low six figures. Making an informed choice before laying down your capital is the best way to achieve your financial goals.

How Much Does a Fitness Franchise Cost?

Costs vary between brands. Typically, those brands offering more business support, access to high-quality equipment, an established brand name, as well as a well-defined marketing pack will involve a higher investment of capital at the outset. However, the boost towards achieving your full potential as a fitness franchise owner helps achieve your goals faster than setting up a solo venture.

Aside from the initial capital investment, there may also be ongoing fees to be paid from your revenue which will impact future profitability. Fees may include annual franchise fees, royalties, or a contribution towards marketing activities that benefit the brand as a whole. Other business expenses should also be considered before making your decision, such as the cost of insurance, equipment maintenance, and staff.

To get the best deal possible, it’s worthwhile speaking with a specialized franchise consultant, such as Guerrilla Franchising, who can help you compare and contrast the various costs and benefits of top fitness franchise opportunities.

What Do You Need to Start a Fitness Business?

If you’re ready to start your fitness business, it’s important to do your research. Researching the location, local demand for fitness centers, and competition in the area can help you narrow down the best options. Researching possible franchise opportunities, as well as comparing the start-up costs, and the benefits included, and perhaps even speaking with other franchise owners will help you determine the best opportunity available.

Understanding your finances is a crucial step in starting a fitness business – particularly if this is your first time as a franchise or business owner. Find out as much information before you sign any contracts to ensure that you have a complete grasp of the ongoing costs associated with your venture, as well as what support is offered for your investment.

Thorough research is the tried and tested way to an informed decision.

Anyone can own a fitness franchise, you don’t have to be incredibly knowledgeable about the industry overall – however, it will help in the long term if you invest in a particular interest – whether you love athletics, yoga, or dancing, having some insider knowledge will certainly be an asset as you grow your franchise.

Choosing The Right Fitness Franchise for You

For some, it’s a simple choice to open a new franchise with a brand they’ve been loyal to for years. This passion translates into their day-to-day business, but it’s not a possible scenario for everyone. While brand loyalty means they have more familiarity with the brand’s approach to business, your favorite fitness center may not have franchising opportunities.

For example, some wonder is Fitness Connection a franchise? While it’s a large company with many locations throughout the country, it does not offer franchising opportunities. There are, however, opportunities available with other big names such as Anytime Fitness, Planet Fitness, and Snap Fitness.

With so many options available, it can be difficult to settle on a final decision without the help of a professional. Matching your interests and goals with the right franchise opportunity helps protect your capital and significantly improves your chances of landing a beneficial and worthwhile deal that can bolster your income for years to come. Speak with Guerrilla Franchising if you would like professional input from an experienced consultant as you navigate the variety of choices available.

The Benefits of Owning a Fitness Franchise

The fitness industry is growing more valuable by the day, making it a worthwhile venture and a productive way to invest in your future. However, the experiences of those who have opened a solo venture versus those who have relied on the proven business models of successful franchises are quite different.

  • A step-by-step business model for guidance
  • Access to the right training and ongoing support for seamless operations
  • Assistance in finding the right location as well as access to company vendors (possibly some discounts too) on state-of-the-art equipment
  • Finance support (whether that’s sourcing initial investment capital or staying in control of long-term income and expenses)

Get Ready for Your Fitness Franchise Journey

To begin, research and reflection are the best ways to find out if owning a fitness franchise is right for you. If you would like to make the right decision first time, give Guerrilla Franchising a call or send a message to discover how a specialized consultant can help take the uncertainty from the process while getting you to your franchise ownership goals faster and smarter.

Top Home Services Franchises to Invest in in 2025

Our homes are constantly in need of servicing. From plumbing to pest control, from landscaping to home security installations, there’s always something that needs to be done. Homeowners are constantly relying on skilled technicians and service providers to ensure their homes remain safe, comfortable, and functional, making home services one of the best franchises to own. On-demand services are on the rise and with online apps and platforms available it has never been easier to book home maintenance and repair professionals.

Whether it’s an emergency repair or routine upkeep, home services are playing a huge role in making life that little bit easier for homeowners.

In this article, we will identify the top home services franchises to invest in 2025 in the USA.

What are Home Services?

Home services refer to a variety of professional solutions designed to maintain, repair, and enhance residential properties. These services include, but are not limited to, electrical work, HVAC maintenance, plumbing, roofing, pest control, and appliance repair. Some other home service franchise examples are house cleaning, landscaping, home security installation, and smart home automation; these are more commonly known as convenience-based services.

Homeowners and renters will always need these services to ensure the longevity of their property’s systems and appliances.

Why Invest in a Franchise?

Building a business from the ground up is not an easy task, so for some, investing in a franchise is the next best thing. A franchise conveniently comes with a proven business model, brand recognition, and ongoing support. Unlike starting a business from scratch, a franchise provides access to an established customer base, marketing strategies, and operational systems that have already been tested for success.

Another huge advantage of investing in a franchise is the fact that it is much easier to access financial backing, as banks and investors are often more willing to fund a franchise with a strong reputation.

While a large chunk of the work has already been done for you, owning a franchise still requires a lot of hard work and effort to maintain the brand standard. However, having a ready-built business with a supportive network makes franchise ownership a strategic investment for aspiring business owners.

The Top 9 Best and Worst Franchises to Invest in

Top 5 Best Franchises

In 2025, the home franchise concepts are a smart investment as they offer promising opportunities due to consistent demand and diverse service needs:

  • Mr. Handyman: Operating since 1996, they specialize in home repair and maintenance.
  • The Glass Guru: Experts in glass repair and replacement services, from window repairs to new shower enclosures.
  • PuroClean: With over 400 franchise offices across North America, they offer fire and smoke damage remediation to biohazard cleanup.
  • DreamMaker Bath & Kitchen: Specializing in home remodeling, providing services in bath and kitchen renovations.
  • NaturaLawn of America: Providing natural and organic-based lawn care services.

Top 4 Worst Franchises

Not all franchises are worth investing in. Some come with risks that aren’t worth taking:

  1. High-Risk Food Franchises (Especially Ice Cream & Frozen Yogurt)
    • Why? High overhead costs, seasonal demand, and intense competition.
    • Issues: Expensive ingredients, high franchise fees, and maintaining year-round demand.
  2. Low-Margin Convenience Stores & Gas Stations
    • Why? Razor-thin profit margins, high operational costs, and dependence on fluctuating fuel prices.
  3. Fitness Franchises (Especially Boutique Gyms)
    • Why? Market saturation, high competition, and expensive equipment.
  4. Vending Machine & ATM Franchises
    • Why? Low profitability, reliance on high foot traffic, and expensive franchise fees.

Are Home Service Brands Profitable Franchises?

Home service brands can be highly profitable franchises due to consistent demand. Essential services like plumbing, electrical work, HVAC maintenance, and cleaning are always required, ensuring steady business year-round. Many home service franchises have low overhead costs and rely on mobile operations.

Established brand recognition and franchisor support help franchisees attract customers quickly. With repeat clients, subscription-based maintenance plans, and emergency service needs, home service franchises offer multiple revenue streams. When managed efficiently, they provide strong profit potential and long-term financial stability.

FAQ

What is the number 1 most profitable franchise?

Profitability varies based on location, market demand, and management. However, McDonald’s consistently ranks as one of the most profitable franchises due to its established brand presence and proven business model.

Does it cost $10,000 to own a Chick-fil-A franchise?

Yes, Chick-fil-A’s starter fee is $10,000, making it one of the best franchises to own for beginners. However, Chick-fil-A follows a unique business model where franchisees do not own the location and must adhere to strict company guidelines.

What is the fastest-growing franchise in the USA?

As of February 2025, fast-growing franchises include The Now Massage, Krispy Krunchy Chicken, Stratus Building Solutions, Jersey Mike’s Subs, and Goosehead Insurance.

What is the largest home service company?

Neighborly is a leading home service parent company, overseeing more than 30 home service brands with over 5,000 franchise locations across six countries.

If you want to invest in a franchise but don’t have time for thorough research, contact Guerrilla Franchising today. We’ll do the hard work so you don’t have to.

Top Fitness & Wellness Franchises to Invest in 2025

With health and fitness being a top priority for consumers, gyms and wellness centers are rapidly expanding and evolving. And entrepreneurs are taking advantage of this proven business model and making a success out of it. Health and fitness franchises range from gyms to wellness centers focusing on recovery, nutrition, and holistic health. The industry thrives on consumer demand for convenience, expert guidance, and community-driven experiences. The growing interest in mental and physical well-being means investing in a fitness or wellness franchise can be both profitable and impactful.

So let’s delve into the top fitness & wellness franchises to invest in 2025 in the USA

The Top 12 Fastest-Growing Fitness Franchises

Anytime Fitness: The Anytime Fitness franchises offer their clients total flexibility with their 24/7 access and global presence.

  • Number of Locations: Over 5,200 worldwide
  • Initial Investment: $389,000 – $970,000

F45 Training: Launched in 2014, F45 Training is one of the most profitable wellness franchises, offering high-intensity interval training (HIIT) workouts.

  • Number of Locations: Over 3,300 worldwide
  • Initial Investment: $294,000 – $719,000

Orangetheory Fitness: Combining science-backed workouts with heart rate monitoring, Orangetheory has seen rapid expansion with numerous studios worldwide.

  • Number of Locations: Over 1,500 worldwide
  • Initial Investment: $613,000 – $1,645,000

Planet Fitness: With its affordable membership model and non-intimidating environment, Planet Fitness offers free weights, exercise machines, and other fitness-related services.

  • Number of Locations: Over 2,400 across various countries.
  • Initial Investment: $1,515,000 – $5,141,000

Snap Fitness: Emphasizing 24/7 gym access and a supportive community, Snap Fitness provides a high-quality workout experience.

  • Number of Locations: Over 1,100 across various countries.
  • Initial Investment: $529,000 – $1,015,000

Burn Boot Camp: This brand focuses on high-intensity training for women and offers nutritional advice as well as support systems for mothers.

  • Number of Locations: Over 335 across the US
  • Initial Investment: $239,000 – $563,000

Stretch Zone: As a pioneer in practitioner-assisted stretching, Stretch Zone promotes healthy living while improving mobility and muscle function.

  • Number of Locations: Over 200 across the U.S.
  • Initial Investment: $124,000 – $227,000

9Round: Specializing in kickboxing-themed, 30-minute workouts, 9Round creates workouts for a whole-body workout. Nutritional advice and personal training assistance are also included.

  • Number of Locations: Over 600 worldwide
  • Initial Investment: $115,000 – $278,000

Pure Barre: This chain of health clubs offers barre (a blend of ballet, Pilates, and yoga) fitness classes.

  • Number of Locations: Over 600 across the U.S. and Canada.
  • Initial Investment: $265,000 – $419,000

Crunch Fitness: With 2 brands, Crunch Fitness and Crunch Signature, this franchise is known for its diverse class offerings and affordable membership options.

  • Number of Locations: Over 400 across various countries.
  • Initial Investment: $668,000 – $6,671,000

The Camp Transformation Center: This is one of the top fitness & wellness franchises to invest in 2025 California. They focus on group training, flexible workout plans, and weight loss transformations.

  • Number of Locations: 110 across the U.S. and Mexico.
  • Initial Investment: $351,000 – $474,000

StretchLab: Offers group-assisted stretching services.

  • Number of Locations: Over 205 worldwide
  • Initial Investment: $163,000 – $334,000

Pros and Cons of Investing in The Top Wealth and Wellness Franchises

Investing in boutique fitness franchises can be a lucrative business, but it doesn’t come without its challenges. Below is a breakdown of the pros and cons to help you with your decision:

Pros:

  • Brand Recognition – An already established franchise like Anytime Fitness and Orangetheory Fitness will already have strong brand awareness, making customer acquisition easier.
  • Proven Business Model – Franchisees receive structured training, marketing support, and operational guidance, reducing the risk of business failure.
  • High Demand – The wellness industry is continuing to grow, due to increasing health consciousness.
  • Recurring Revenue – Many franchises operate on a subscription or membership basis, ensuring steady cash flow.
  • Exclusive Territories – The best fitness franchises offer geographical protection, limiting competition within a certain radius.

Cons:

  • High Initial Investment – Some fitness franchises may require significant capital ($1M+), making it a costly venture.
  • Royalty Fees – Franchisees must pay ongoing fees, often a percentage of revenue, which cuts into profit margins.
  • Operational Restrictions – Strict guidelines and limited flexibility can prevent franchisees from doing what they want and giving the business a personal touch.
  • Market Saturation – The fitness and wellness industry is highly competitive, so standing out is a must.
  • Economic Sensitivity – There will be periods when consumers cut back on gym memberships and wellness services, therefore affecting profit.

How to Manage and Run Your Franchise Branch Successfully

Running a fitness and wellness franchise requires business acumen, leadership, and customer service excellence. There are a number of fitness franchises for sale and your job is to take your gym to the next level.

Understand the Franchise Model

Study the franchise handbook, and get familiar with operational procedures, and brand guidelines. Be sure to follow the standard operating procedures (SOPs) set by the franchisor to ensure consistency and stay up to date on new fitness programs, marketing campaigns, and company policies.

Hire and Train a Strong Team

Employees can make or break a business, so make sure to have a qualified team beside you. Recruit certified fitness trainers, front desk staff, and cleaning personnel who align with the franchise’s culture. Continue to train them in customer service, sales techniques, and safety protocols and be sure to incentivize them to boost performance.

Focus on Member Experience

Offer excellent customer service to enhance satisfaction and keep them coming back. Maintain a clean, safe, and welcoming gym environment and encourage customers to give feedback so any concerns can be addressed and services improved.

Manage Finances Efficiently

Keep an eye on your finances by tracking revenue and expenses, controlling costs by managing utility bills, payroll, and equipment maintenance. Set financial goals and regularly assess performance against KPIs (Key Performance Indicators).

Implement Localized Marketing Strategies

The top fitness franchises in 2024 used social media, local influencers, and partnerships with nearby businesses to promote their gyms. Promotions, referral programs, and free trials were found to attract new members. Engaging in community events is great for increasing brand awareness.

Maintain Equipment and Facilities

Regularly inspecting and servicing gym equipment ensures breakdowns are kept to a minimum. Cleanliness and hygiene standards are to be kept at an all-time high and a strict maintenance schedule should be implemented. Be sure to provide amenities such as lockers, showers, and water stations to enhance the gym experience.

Grow Membership and Retention Rates

By creating personalized fitness plans and wellness programs you’ll be keeping your members engaged and excited. Offer them group classes, personal training sessions, and fitness challenges, and think about implementing loyalty programs and rewards to encourage long-term memberships.

Stay Compliant with Industry Regulations

Health and safety guidelines must be constantly adhered to; this includes emergency protocols and liability coverage. Ensure all trainers have proper certifications and first-aid training and keep updated with legal requirements related to contracts, employment, and gym operations.

Adapt and Innovate

Don’t get left behind – stay up to date with the latest fitness trends, such as wearable technology, virtual training, and AI-driven workouts. Promote hybrid options like online classes or digital memberships, making it easier for consumers to access your gym.

Engage with Members and Create a Strong Community

Organize fitness challenges, boot camps, and social events to build a sense of community and encourage member interaction through social media and online groups. Offer excellent support and motivation to help members reach their fitness goals.

By following these steps, you can efficiently run and grow your gym franchise, but if you’re still unsure and need further advice, then don’t delay. Contact Guerrilla Franchising and we’ll get you started on your journey to success.

Common Mistakes to Avoid When Buying a Franchise

The road to purchasing a franchise is often paved with pitfalls. Thankfully, the franchise model has been around for long enough that we can learn from the mistakes of others as they teach us what not to do, as much as they show us what to do.

The franchise model is attractive to potential business owners as the brands involved often have foolproof business plans and marketing packages that really help you out when you’re getting started. The same can be said of common mistakes. Some brands will offer you a realistic look in their FAQs that acknowledge easy-to-make mistakes while advising you how to prevent yourself from making the same blunders.

When you’re looking into buying a franchise there are several key points to keep in mind. These will save you time, money, and hassle in the long run.

What Are the Advantages and Pitfalls of Buying a Franchise?

The advantages of buying a franchise are primarily the well-defined and extensive support networks available to new franchisees. Franchises typically have a lot of data that can help you visualize your path to success. Many franchises also offer tried and tested business model blueprints, while also having key information on successful marketing tactics and customer acquisition. This prevents learning by trial and error, saving time and money in the long term.

However, an informed decision means being aware of the challenges of buying a franchise. As with other business investments, it’s imperative that you have full control over your budget. Franchises come with a wide scale of initial investments, ongoing contributions via fees and royalties, as well as the actual running costs themselves. A full financial analysis is necessary to ensure that you can both cover the capital investment and have some money available to maintain your business while you’re building your customer relationships.

Many questions will arise during your research. Make sure you have the answers before signing any agreements.

Questions to Ask When Buying a Franchise

Franchise problems arise when the right questions have not been asked or answered. It seems a very transparent and straightforward way to business ownership, but not all franchises are the right fit.

Some questions you must ask yourself:

  • Should I buy a franchise?
  • Is this the right industry for me?
  • Am I passionate about this franchise?
  • Do the brand’s values align with my values?

These questions can be answered with in-depth research and self-reflection. When you’ve narrowed down to a few options, try speaking with the brand’s franchise representative and other franchisees. This will help you determine if the franchise is a perfect match.

Reaching out to other franchisees is the best way to get a realistic understanding of the day-to-day business from lived experience. Owning a business can be tough, so there’s no point in ignoring the challenges. Having a well-rounded understanding of the benefits as well as the challenges of buying a franchise will help you decide if this is the type of challenge you want. Overall, you will make a more informed decision and face fewer surprises down the line.

Other questions to ask focus on the potential success of your business:

  • Is the location ideal?
  • Is there a demand for this product/service in this place?
  • What competition is nearby?
  • Does this brand have local support/reflect the values of the community?
  • What is the capital investment?
  • What are the ongoing costs to run the franchise?
  • What support is available from the franchise headquarters?

The more questions you ask, the more likely you are to have a complete picture of the expectations and implications of buying the franchise. While investment values vary to the extreme, more knowledge can help reduce the risks of investment.

Franchise Problems and Examples

Learning from past mistakes will help you leap forward to success. Take Quiznos for example. By putting too much financial strain on franchise owners, without offering much in return, individual franchises failed to make enough profit to stay afloat. Poor management and unsustainable costs resulted in a poor return for Red Lobster. After ruling the market for years, Blockbuster eventually closed after failing to adapt to changing market forces and consumer preferences. Pizza Hut lost out on the lion’s share of the pizza market to Dominoes after becoming too comfortable with the status quo. 7/11 owners took on too much debt for expansion plans and were caught short by a shifting economy.

Others have paved the way so that we don’t have to repeat these unfortunate examples. That’s why it’s important for you to vet your potential franchise relationships to ensure that you avoid tying your capital investment up in a web of mismanagement and economic short-sightedness.

Reasons Why Not to Buy a Franchise?

As specialist franchising consultants, the team here at Guerrilla Franchising is often asked “What is the most significant disadvantage of owning a franchise?” This is very subjective, however through our extensive work with franchisees, we’ve concluded that it’s the limited control over the business that most disappoints franchise owners.

Depending on your goals and circumstances, this could of course be of benefit to you. Many entrepreneurs are eager to get started in business ownership by following a defined, airtight blueprint while having a support network available to help when needed. However, some can become disillusioned by the rigid parameters set by the brand.

The full extent of what the brand expects and what controls you have should be set out in the franchise agreement. These can be overwhelming for newcomers to the franchise world. Having a lawyer or franchise consultant look over your agreement alongside you can make sure there are no clauses missed and that you are fully aware of the extent of control you have over your franchise business.

The franchise agreement will detail all the benefits you will receive (such as support, access to suppliers, etc.) as well as the expectations the brand has of you. A close reading of the agreement will help you decide if this is 1) worth the capital investment, and 2) a relationship that you can be happy with for years to come.

Should I Buy a Franchise?

There are hundreds of thousands of franchises open in the US. Some of the top-performing brands are doing exceptionally well, with franchises pulling in significant revenue. Success stories can be deceptively intoxicating, but it’s important to remember that not all franchises are roaring successes.

Whether or not you should buy a franchise is a very personal decision. The best way to come to a solid resolution is to research, research, research. Asking questions beyond the surface, and beyond the glamorous idea of packing in the 9-5 or investing in your retirement. There are very significant issues to contend with before you reach that stage.

Buying a franchise is not as simple as it first appears, and making the wrong decision could be a costly mistake. If you have a lot of capital on the line, it’s wise to reach out to a franchising consultant specialist who can use their industry knowledge and experience to help you find the best and most suitable deal for you.

For more information about the Guerrilla Franchising system for success, let us know by filling out our contact form and providing as much detail as possible so we can help you the best way we can.

How To Choose the Right Franchise: A Step-By-Step Guide

Are you ready to take your first steps into franchise ownership – but unsure where to start? With thousands of opportunities available, across hundreds of niches, there’s plenty to choose from. Starting a business isn’t easy, but opting to go down the franchise route stacks the odds in your favor.

Of course, the journey looks much different for franchisees than it does for independents. Some franchise brands take care of all the peripheral aspects – by providing a tried and tested business model, hooking you up with their preferred vendors (sometimes with exclusive access and discounts), offering marketing guidance, extensive training, and ongoing support.

It’s not a case of any franchise will do. Before you begin your research, and while you are researching, it’s important to consider what matters to you and where your passions lie. Not all franchises offer the same level of support, while potential financial rewards vary to the extremes as well. To help you navigate the complex world of franchising, we’ve compiled a franchise step-by-step guide to help you as you begin your journey.

How To Start a Business Step-By-Step Guide

Unlike an independent operation, a franchise is a business network where you, the franchisee, pay a capital investment in a brand and in return receive the benefits of working alongside one of the top brand names in your industry. Franchises are popular because they offer an established support network while enabling you to grow your own business.

There are quite a few considerations to be conscious of when opting for a franchise business. That’s why it’s a good idea to get an overarching knowledge of the application process, expectations, and obligations before you sign any contracts or hand over your cash.

As with any business, it’s imperative that you conduct thorough research for both the necessary steps to set up a franchise, as well as the ongoing obligations you will have to the franchisor (the company you join as a franchisee). Other research will include the best location of any physical buildings, sourcing a building, and discovering local interest in the franchise(s) you are considering.

It may be in your best interest to work alongside a professional franchise consultant with specialist knowledge and experience in how to set up a franchise business in the US. Though this does cost a fee, having a mentor to guide you and help you will prevent you from making the most common mistakes among potential franchise candidates.

Steps to Choose the Best Franchise

You may have a lifelong dream to own and operate a fitness franchise in your local community – but if there are more fitness centers in the vicinity than there are potential customers, then it may be best to go back to the drawing board.

During the research phase of your journey toward becoming a franchisee, it’s necessary to consider multiple factors before deciding if it will reap the rewards you desire. Factors to consider include:

  • Specific franchises offered within your industry,
  • Financials – initial capital, average revenue of similarly-located franchises, ongoing fees and royalties, insurance, equipment costs (if applicable),
  • Market – potential customers, location, projected trends,

This list is not exhaustive but rather demonstrates that the more knowledge you have before making any commitment, the more likely you will be to make an informed decision.

You can use franchise portals and visit franchise websites directly to compare and contrast the initial start-up costs, as well as the value of the support offered in the beginning and beyond. You can narrow down the list of options by staying cognizant of your budget, brand values, and potential for success. A franchise consultant can be of great help here, by utilizing insider knowledge and extensive experience to help home in on the perfect option for you.

Steps To Set Up a Franchise: A Guide to The Financials

Whether you’re setting up an independent venture or opting for the more supporting franchise route to business ownership, you will begin with a set budget. This may be your own capital or via a start-up loan. It’s important to stay within the boundaries of this to prevent impacting your financial stability.

Once you have a solid idea of your upper limit, you can analyze the franchise opportunities on offer. Remember to keep in mind that you will need some liquidity to maintain your fledging franchise at the start. Next, you can determine whether the proposed franchise package is robust enough to justify the initial cost. You will discover that some offer far better value for money so it may even be worth speaking with existing franchisees to get a feel for their experience, and to understand if this is something that would help you reach your financial goals.

You might be starting a franchise to supplement your current income while you work, you may be looking for a way to challenge yourself in retirement, or perhaps you want the freedom to throw in the 9-5 towel and operate on your own terms. It’s necessary to understand what your goals are to ensure that you choose a franchise opportunity that will most likely help you reach those goals.

How To Do a Step-by-Step Guide for Due Diligence

Paperwork can be complex for setting up a franchise business. It’s going to involve a lot of reading – especially to understand if the brand is in a good place financially and socially. This will serve as a way to assure you of long-term stability, and therefore a safe investment for your capital.

First, read the Franchise Disclosure Document, this aims to give you an overview of the franchise and its financial situation. Franchisors (the business) are keen to make a great impression on potential franchisees (you). Many brands have a recruitment package containing videos, articles, and presentations – these will help you get a better impression of the company’s values as well as its operational procedures. Collectively, these will help you determine which brand is the right fit for you.

Speak with the franchise representatives, as well as existing franchisees, to help you make up your own mind on whether this is a suitable opportunity. Remember, not all details are included in the marketing pack so speaking with someone with lived experience can contribute to a better understanding of what awaits you.

You can meet with the franchisor in person by arranging a discovery day. This is your opportunity to ask questions. Prioritize questions about the financial implications, post-purchase support, and company values. These three topics will have an impact on your day-to-day life for the foreseeable future, therefore their answers must align with your expectations and desires.