Q: What should we watch for when thinking of getting a franchise? Should we be wary if the company charges a very low fee or if it only has a few outlets?
A: In getting a franchise, one has to assess not just the franchise, but the growth of the company as well over a certain period of time. This time frame may usually cover a one- to two-year period wherein one can assess if the company has grown or not.
Likewise, has the company been able to expand and set up its own branches? There are some brands which may take some period of incubation before some growth can be gleaned from it. On the other side of the coin, a good franchisor should be able to carefully select the type of franchisee that would yield the most benefit to the franchise. The quality of the franchisees that can provide effective management of the branches basically gives the franchise room for more growth and success.
Armando "Butz" O. Bartolome is currently President of GMB Franchise Developers, the pioneer franchise development company in the country and is behind the growth and expansion of over 200 local companies. You may reach him at email@example.com.