Pick A Top Franchisor For Your Startup Business

If it were possible to create a hot franchise list, here at Franchise Opportunity Guru we’d base it purely on average franchisee profitability and percentage of franchisees signing up for a second term of their franchise agreement. You see, making money and a proven track record of satisfied franchisees are two critical criteria to help you make the best choice of franchise for your own investment.

But sadly it’s not possible to create a hot franchise list. Franchisors just don’t want to publish the facts about earnings or continuity of businesses. The data available to make a selection of the best franchise is very slim – only around 25% of franchisors give an earnings claim in their public disclosure documents (UFOC in the USA) and so if they don’t publish any earnings claim, we can’t consider them.

Actually, if we could put together a list, we wouldn’t include those who don’t publish earnings figures anyway. Why? Because if they’re not brave enough to say how much their franchisees are likely to make, it’s like standing on top of a bridge at rush-hour, blasting a fog-horn and saying, “Warning, a lot of our franchisees struggle!”.

Let’s face it, if you don’t publish a realistic earnings claim for your franchisees, it’s a pretty strong indication that you don’t have confidence in your franchisees making money. In cynical moments, you just might wonder whether money passed in plain brown envelopes between franchisors and legislators to allow franchisors to get away with not publishing an earnings claim.

Let’s just sort out the credentials of The Franchise Opportunity Guru before going any further. We do not directly promote any franchise and we make no revenues from the sale of franchises. We have no affiliation to franchise associations or organisations so that we can put you, the potential franchisee, first.

So how do you draw up your own hot franchise top ten? It’s easier than you might think. Go to a franchise expo and check out the franchises that appeal to you. Ask them the following four questions

1. What’s the average earnings for your franchisees in this region?
2. What percentage of franchisees sign up again for a second or third franchise term?
3. What percentage of people who buy a franchise are still in business with you after 5 years?
4. How much of the franchisor’s income comes from existing franchisees, rather than new franchise sales?

Finally, ask yourself which franchises appeal to you. Armed with the knowledge that answers to these questions will give you, you’ll quickly be able to draw up your own list of great franchising opportunities and, just maybe, spot your perfect hot franchise.

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