If you've decided that franchise ownership is the right form of entrepreneurship for you to pursue, it is time to navigate through the thousands of franchise opportunities available to find the one that matches your finances, skills, and interests. Things to consider include the type of company and store, the franchisor's reputation and presence in your region, the cost to purchase and operate the franchise, the financial history of the franchisor, and the satisfaction of current franchisees. With so many things to think about, franchise research can be overwhelming. This guide is designed to break down the franchise selection process and help you learn exactly what you need to look for when picking your future franchise business.

Vet-friendly franchises

Is choosing a Vet-friendly franchise important to you? If so, your first stop on the path to choosing a franchise should be VetFran to find a list of Vet-friendly franchises. These are franchises that offer special discounts and incentives to Veterans and value the skills and talents Veterans can bring to their companies. These companies go out of their way to hire Veterans as franchisees, and if this is important to you, you won't want to miss checking out the long list of Vet-friendly franchisors. It can help you narrow your own list of potential franchises at the very beginning of your search. Don't worry about being too limited in your options though, because there are over 150 companies involved in VetFran from which you can choose. What are some of the companies on this list?

Wing Zone
Colors on Parade
Signs Now
Fantastic Sams
Lawn Doctor
Figaro's Pizza
Midas
Dunkin Donuts
FastFrame
Molly Maid
The Coffee Beanery
The UPS Store
Instant Tax Service
Meineke Car Care Centers
Parcel Plus
Geeks on Call
Maid Brigade
Merry Maids
Maggie Moo's
Cartridge World
Gymboree
Cinnabon

...and more! The list of Vet-friendly franchises is a long one, so if this is important to you in your search, start looking there!

Type of business

Before deciding what type of business you are going to operate, consider what type of business you would enjoy. Because a business is a major investment of time, it should be something that you enjoy doing. The last thing you want to do is be stuck in a business for ten years or more that you dislike! Consider what industries you might enjoy working and spend a day with owners of franchises in those industries to determine how their typical day is spent. Seeing the job in action can help you determine what type of business would make you happiest. Second, look for an industry that you already know something about, or learn about the industry prior to making a decision. Find out what the industry demands, how long it takes to build a customer base, and the typical returns expected on businesses in that industry before choosing a company. Jumping into a franchise because it sounds interesting might be a good idea at first, but not when you learn how much large, expensive equipment you need to purchase in order to do business! Know in advance what is involved in the industry of your choice, and make a smarter business decision.

Cost of the franchise

Before looking at the costs of purchasing a franchise, look at your own financial capabilities. Knowing what you can or cannot afford beforehand will keep you focused on franchises that are feasible. Many franchises will list two primary costs: the initial franchise fee and the total investment required. Even low-priced franchises can require significant investments in buildings, equipment, inventory, training and more. Know what you can afford before checking out the options and it will be easier to select the franchise best suited to your financial situation. Never settle on risky or uncertain ventures just because you can afford them. Look for financing solutions to help you afford a safe, solid franchise. Some franchises require up to three years in working capital before the business becomes profitable. Knowing how long it will take your business to turn profits is an important part of understanding the financial requirements of the business. Get help from a financial expert knowledgeable in franchises to understand both your own financial abilities and the costs of the franchise.

Franchise history and reputation

Once you have narrowed your list of possible franchises, doing your homework will ensure that you choose a smart franchise with a stable history and a promising future. Franchisors are required to provide you with a Uniform Franchise Offering Circular (UFOC), which is a lengthy disclosure document that provides extensive information on the franchisor, the relationship between the franchisee and the franchisor, and the franchise agreement terms and conditions. For an indepth look, click here to check out Understanding the UFOC which will provide you with more information about reading and understanding the Circular. What things should you look for in the UFOC? Look at the history of the franchisor to see how long it has been operating, how many franchises have opened, and how many have closed recently. Find out where franchises are currently operating and compare those regions to yours in terms of customer demographics, area cost of living, and other factors that could affect your potential sales. Also examine the stability of the franchise by checking for warning signs such as bankruptcies, lawsuits, or a constant turnover of executives and decision-making individuals at the company.

Once you have carefully reviewed all each of the sections of the UFOC, part two of your homework is finding out in person what operation of that franchise is like. Within the Circular, the franchisor is required to state the location of all branches of the franchise, including the names and contact information of the franchisees. Contact as many other owners as you can to determine their level of satisfaction with the company, the training and ongoing support offered, the clarity of contracts, the financial returns, and the daily tasks involved with ownership of the franchise. Spend a day on the job with owners in nearby locations and understand what the job will demand once you purchase the franchise. By establishing positive relationships with other owners before operating your franchise, you will have a network of experience to lend you advice and guidance as you get started on your business venture.

Franchise program

In addition to the strength and overall reputation of the franchisor, you should understand the elements of the franchise program offered by the franchisor. Does the franchisor provide a comprehensive training program featuring both classroom and hands-on training? Do they teach you both business knowledge and franchise-specific information? The training offered by the franchisor should not only help you when you purchase the business, but when you are setting up the business as well. Many franchisors offer in-store support for the first few days of business to ensure that you are running properly right away. In addition to training, find out what type of ongoing support and assistance is available. The franchisor should work with you regularly to keep your business running smoothly and should help you resolve any issues you encounter right away.

Find out from current owners how often products and marketing materials are updated, and how much interaction franchisees have with the franchisor on a regular basis. Does the franchisor set them up in business and then ignore them completely except to collect royalties and other fees, or are they constantly developing new products and testing them in local markets? Constant interaction and involvement can contribute significantly to your business' long-term success by ensuring that you stay on the cutting edge for your industry.

Business potential

Once you have determined what you want out of a franchise, what you can afford, and what type of franchise training and support is offered, examine the business potential of the franchise in your area. Is there demand for the product or service? Would there be a market? Will you be able to find employees with the right skills and experience to succeed within your business? Answering the traditional business questions that all new business owners must ask is a critical step to determining whether or not a particular franchise is the right move. Look at the demographics and needs of your area to make sure your franchise is a fit with the community. A city that serves primarily as a travel destination may not be the right spot for a franchise selling printer cartridges, whereas a kid-friendly candy store might not be profitable in a downtown business district. Establishing a franchise in an area where none currently exist might give you a jump on the market and a prime opportunity to earn large profits; on the other hand, however, consider why that franchise doesn't currently exist in that location and make sure there is a need for your business.

General feel

Last, but perhaps most importantly, use your gut feeling when considering a franchise. Do you feel like the franchisor is trying to scam you, or do you feel pressured to sign the contract without fully understanding the terms? The vibe you get from a company up front will most likely be the vibe you get throughout the duration of your franchisor-franchisee relationship. You should like and trust the people you are working with, and they should be committed to making sure you fully understand everything in the disclosure statement and the contract. There should be a lot of communication between you and the franchisor from the moment you express interest in the franchise to the moment you sign the contract to purchase. Establishing a solid, trusting working relationship early on will ease your anxiety tremendously as you settle into your exciting new business venture.