Conduct Market Research
- Perform internet research — Search engines like Google and Bing help you find websites and pages that collect franchise information. ...
- Consider attending franchise expos — Organizations like the International Franchise Association (IFA) and National Event Management hold franchise industry shows in the U.S. and Canada. ...
Full Answer
What Exactly Is Franchising Market Research?
What are the benefits of market research?
How do you research a franchise?
How to Research a Franchise – In 6 StepsConduct Market Research. This first step is to explore what's out there for franchise opportunities. ... Narrow Down Franchise Brands. The next step is to explore specific brands. ... Apply to Franchises. ... Do Due Diligence. ... Visit Franchise HQ. ... Make a Decision.
Why market research is important for a franchise business?
Market research not only helps in identifying new business opportunities but also contributes to designing your marketing strategies and campaigns for a successful business. Opting for market research could help you to directly target the interest of your customers, generating more sales.
How do I evaluate a franchise opportunity?
To check if a franchise is viable you need to ask the franchisor the following questions:Does the business operate in a large and growing market? ... Is the growth in the market likely to be sustainable? ... Are attainable margins sufficient to cover franchise fees? ... Can the product or service demand a price premium?More items...
Do franchises have to complete their own market research?
Failing to do adequate market research is one of the biggest mistakes independent entrepreneurs typically make; as a franchisee, it's done for you. The franchisor also provides you a clear picture of the competition and how to differentiate yourself from them.
What are the 4 steps of marketing research?
4 Steps of Market Research ProcessIdentify your problem. Identifying the problem will be the foundation of your entire marketing research process. ... Create a research plan. Create a research plan before carrying out your research process. ... Craft research instruments. ... Analyze data and create report.
When investing in a franchise What are 5 important things to consider?
But if you're serious about investing in a franchise, there are a few more important things to consider.Understand the business. ... Consider all the costs. ... Size up your commitment. ... Get familiar with a franchise's framework. ... Be realistic about your expected return on investment.
What is franchise strategy?
Put simply, a franchise strategy is a road map that gives your business direction by: outlining objectives. helping you to understand the landscape in which you operate. mapping tactics to achieve your goals. planning for any potential obstacles in the road.
What are your criteria in selecting a franchise?
You want a franchise that has a business model that drives profits. Massage Heights has formed the business model around Membership, which is a proven model for business profit. Personal interest. A vital sign that a franchise may be right for you is if you are passionate about the product or service it provides.
What is the most important consideration in franchising business?
Important considerations for your franchise model include fee and royalty percentage, terms of agreement, size of territory awarded to each franchisee, geographic areas in which you are willing to offer franchises, the specifics of your training program, and more.
What costs are involved in buying a franchise?
Costs involved in buying a franchiseFranchise fee. ... Franchise start-up costs. ... Working capital for financing a franchise. ... Ongoing franchise royalty fees. ... Ongoing franchise advertising or promotion fees. ... Other franchise costs.
How does opening a franchise work?
A franchise enables you, the investor or franchisee, to operate a business. You pay a franchise fee and you get a format or system developed by the company (franchisor), the right to use the franchisor's name for a specific number of years and assistance.
Do franchisees own the property?
No, the franchisor is the entity that owns the intellectual property, patents, and trademarks of the brand or business being franchised. A franchisee buys the rights and licenses to operate a location of the franchisor.
Why sales and marketing will be key to the success of the franchise business?
The concept of marketing is of a great help to the franchisor and the franchisees to bring value and assure profitability to the franchising business. The marketing plan is customised to understand the needs and demands of the customers and satisfy them equally.
What is the role of consistency in a franchise?
Consistency throughout your brand helps you to attract new franchisees and customers. It is vital that you retain control over your promotional materials, logo, images, and theme. Franchise brand consistency is required to create a uniform marketing message and maintain a strong identity across all franchise partners.
Why is gathering and analyzing information is crucial to assist them making decision on their new franchise business?
The Value Of Research By systematically collecting, analyzing and interpreting market data, you can uncover key trends, form a better understanding of the franchise's market, customers and competitors, and make an educated decision about whether to purchase it.
How Do I Research a Franchise?
“Lean into it. When you ‘own’ the entire research process your confidence grows. By doing thorough research you become more confident, thereby increasing your odds of success as a franchise owner,” he advises. Libava also has written a book on the topic .
What is the next step in buying a franchise?
The next step is to explore specific brands. This is a “narrowing down” phase. Buying into a franchise opportunity means using the franchisor name and trademarks. Prospective franchisees need to believe in the franchise brand they ultimately operate under. At this point you’re looking for reasons to exclude a particular franchisor or put the brand on your short list of picks.
What happens if all goes well for a franchise?
If all goes well, you will be told that the franchisor wants YOU as one of its franchisees. You will be excited. You may be presented with a contract that day or shortly thereafter. Things could come together quickly.
Are Franchises a Good Idea?
You will know if buying a franchise is a good idea once you start to research the franchise world. Research takes commitment, but if you don’t have an idea for a business from scratch, then looking at franchise companies is a good alternative.
What questions should franchise development representatives ask?
That includes asking franchise development representatives questions about their products/services, how the franchises get to market, and how they support their franchisees.
What is franchise model?
The franchise model is the only business model that enables you-the prospective franchise owner, to find out just about everything you need to know about the brand and the business, before you plunk down any of your hard-earned money. You just need to know how to get the information you need.
What to call existing franchise owners?
Case in point; you can call existing franchise owners ( franchisees ) of the franchise concept you’re looking into, and ask them questions that will give you the information you need. Specific information, including how much money they’re making as franchisees.
How many franchisees do you need to call?
At a minimum, you need to call 10-15 franchisees. And make sure you call franchisees in different geographical regions, so you can get a good feel of how the franchise is doing nationally.
Why do franchisors hold their marketing techniques close to the vest?
The reason: some franchisors hold their marketing techniques close to the vest-and rightly so. They don’t want the national or local competition stealing their ideas.
Is franchise the best business model?
The franchise business model, if leveraged properly, is amazing… and powerful. As a matter of fact, it’s been called the best business model ever invented. But if you end up choosing the wrong franchise, and you blow through all your money because you didn’t do the type of research needed to get all the facts, then owning “ The best business model ever invented ” won’t much matter.
Do franchise brands pay to be there?
The franchise brands on these websites pay to be there, as the companies behind these sites “ consult ” with them.
So, how does market research help becoming a franchise business owner?
A franchise business is a business in the first place. Just because someone else is providing you with the products and the setup doesn't mean you have less works to do. Any successful business venture requires a lot of hard work including product research, market survey, area survey, risk calculation and so on.
Knowing your product is essential for a successful franchisee
Carrying out an extensive, quantitative research is the first step of any business. Once you have a tentative product or product category in mind (for example, foods and beverages, or fashion garments, or whatever else), start researching it. Spend some time to know your product in and out. Ask yourself questions like:
Do market & area research for franchise businesses?
A routine question: Are there similar or competitor brands in the vicinity?
Market research tips and techniques for franchise businesses
I find the qualitative analysis and interview method very handy. Asking people out about your product in extensive, intimate interviews can be a real handy market research tool for franchise businesses.
Sample market survey for franchise business owners
Suppose, you have planned to go for a fashion brand franchise, and the target group is young adults.
What are your franchise business market research tips?
Can you contribute to the list or enrich us with some great insights? We would love to hear from you. Leave a comment below and let us know about your unique market survey methods for successful franchise businesses.
What is market research?
Market research gives you a view of your prospective customers: who they are, how many there are and how they might behave in relation to your business. Your fact-finding mission should also help you find out about your competitors and how your organisation stacks up against them.
How to segment target market?
Using a technique called ‘market segmentation’, you can divide up your target market into separate groups, based on factors such as location, age and socio-economic background.
What Exactly Is Franchising Market Research?
To understand what franchising market research is, we first need to understand the scope of business market research in general.
What are the benefits of market research?
Benefits of Franchising Market Research 1 Better insights into the state of the market in terms of supply and demand 2 Better understanding of the target demographic 3 Better knowledge about the existent competition 4 Clearer grasp on numbers 5 Higher chances of being able to secure franchise finance
