As you already know very well, there is an incredible amount of research involved in investing. Those that aren’t willing to devote the time to research have little business becoming involved with the high-stakes world of investment. Whether purchasing stocks or buying up real estate, if you aren’t armed with knowledge, then you’re doomed to make some very expensive errors in judgment. This is infinitely more true in the world of franchising, where investments are long term and require a commitment of time and energy as well as money.
Business journals can be a good source of information, especially those specializing in franchising. Trade association events and franchising expos can also be invaluable for establishing what options may be available. Of course, the smart aspiring franchisee will also want to compare Franchise Disclosure Documents amongst all potential franchising organizations as well. However, the internet has made it easier than ever to get valuable information about franchisors to help the investor make a wise decision.
Association Sites
The key to making an intelligent decision is to start by looking at the broad picture (finding out what options are available) and then narrowing focus onto specific franchisors. A great resources for getting a broad perspective on franchising opportunities are sites for organizations such as the International Franchise Association, the American Association of Franchisees and Dealer and the American Franchisee Association. These websites can provide an idea as to what franchisors may be available in any given area of interest, which ones are doing well, which ones are struggling, and can provide a wealth of practical advice and information in all aspects of franchise ownership.
Online Publications
There are those out there who make a business out of understanding business. These publications and research organizations are the best source for the simple statistics and facts about franchising organizations. Almost all of the major financial publications such as USA Today, Entrepreneur, Inc. and the like, maintain online sites where you can subscribe and research easily. Franchise specific publications like Franchise World, Franchise UPDATE, Franchise World and the like can provide even more valuable information about the franchisors that seem most promising (and those that don’t).
Research Organizations
Once an investor has settled on a few likely franchise organizations, consulting a franchising research site can help an investor get a better view of those specific companies. Sites for organizations such as FRANdata or FranSurvey offer detailed statistics and are a valuable resource for hard data.
Government Sites
There are a few key governmental sites that should be included in any franchise investors initial preparations. Though not specifically geared toward providing information about franchisors, these site provide invaluable information about franchising and business ownership. The Federal Trade Commission’s site provides information about protecting yourself as an investor and business owners. The Small Business Administration’s website contains a wealth of information about franchise ownership and advice for small business owners. The SBA also maintains a Franchise Registry of franchises which are supported by the SBA and qualify for SBA loan backing.