How to spot a good franchise

Sarah Stowe

What are the signs that a franchise will provide you with the opportunity to run a profitable operation, and deliver on its promises?

We asked lawyer Robert Toth to outline some key factors that indicate a franchise is on track.

Top 10 signs of a good franchise

  1. Quality products and services with longevity (no passing fads).

  2. A strong, well-known public image and a niche in the industry.

  3. Professional management.

  4. The ability to duplicate success.

  5. The ability to create profits.

  6. The capacity to grow and create financial strength.

  7. The ingredients to make it successful for you.

If the business is new to franchising, is it suitable? Check these points…

  1. It has been operating in the market with company owned stores or units for at least two to three years.

  2. It has a distinct business that is difficult to imitate.

  3. There are standardised operations and systems in place.

Robert Toth is a partner at law firm Marsh & Maher.