What to look for in a Franchise Purchase
If you are thinking about buying a franchise you take a look at different things. Look at location, franchise fees, initial investment, and competition from other sources.
Many people are quick to jump into a Franchise agreement without doing the necessary due diligence. You need to ask for certain items. This should include: Corporate Documents, Financial Statements, Corporate Tax Returns, Access to the Accounting system along wth Bank and Credit Card statements. Also, having a Notice Assessment review for CRA would be a critical step in the process.
Look for a franchise that is focussed on E-Commerce and has good online marketing presence. Social Media has become an essential part of any business.Having a Franchise with strong influencers will go along way to help grow your location.
Franchises that have a strong online backing and are going to help you in the new post Covid world. One tip I would give is to look for a franchise that focuses on environmental and social issues, these will have longer runways for success.
You might think ‘Quick Service Restaurant’ when you think of the world of franchising. 60% of the estimated 1,300 franchises in Canada are not in the Food Category. 60% of franchises can be found in a range of other industries like Wellness, Products or Services, Elder care, Cars and many, many more.
Dig deep to find business opportunities in franchising by investigating the sales verticals available! So many possibilities are out there, make sure to do a deep dive in your due diligence.