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Sep
7
2018
OWNERSHIP

How to Buy a Franchise – Identifying the Right Franchise System for You

How to Buy a Franchise – Identifying the Right Franchise System for You

When you’re considering the different options for buying into a franchise, it can be quite challenging (not to mention time-consuming) to fully research the viability of each different brand. You want to ensure the brand is not only a good fit for you personally, but also has the capacity for growth and sustainability. Selecting a franchise system is not a decision to be taken lightly but knowing what to look for in a potential business prospect will help set you up for success.

To help you identify the right franchise system for you, look for these signs that signal a franchise brand’s health and sustainability.

Top signs that a franchise brand is successful and sustainable

Growth potential

First, it’s crucial to consider the brand’s potential for growth. Is the category already saturated? How much local competition is there? You’ll want to ensure you have the ability to stand out from the crowd and get noticed by potential customers.

Take a look at the number of franchise locations of not only the brand you’re considering but also its competitors. How rapidly are franchise locations opening? If the franchise is showing strong unit growth, it may be a good sign of potential success, but growing too rapidly could lead to over-saturation. On the other hand, if the brand has recently closed some locations, it may not be the best fit with growth in mind.

Consider also how far consumers are willing to drive to do business with you. This usually depends on how frequently they need your goods or services. It’s likely they’ll travel longer distances for higher-priced, less-frequent purchases like a vehicle, and shorter distances for regular purchases like fast food or groceries. Note the populated areas within your city, as you’ll want to maximize your proximity to potential customers.

Responsiveness

As you’re researching franchise options, it’s a good idea to gauge an organization’s responsiveness. In addition to doing your research and reviewing as much information about the company as you can, contact someone from the organization directly to see how they respond.

Ensure the potential franchisor is straightforward in their response instead of avoiding questions or providing answers in a roundabout way. Also, factor in the response time. Timely and professional reaction to a potential franchise owner is a great sign that you’ve found the right system. If you don’t receive satisfactory responses in your initial stages of research, chances are that this will not improve once you become a franchise owner.

Training

Another way to judge if a franchise system is the right choice is by their level of dedication to training new franchise owners. Ensure the brand’s training includes all relevant company-specific knowledge needed for daily operations, but also a general business foundation including finance, human resources and marketing.

At The UPS Store, new franchise owners or their designated managers are put through a comprehensive four-phase training program which includes in-store and university learning opportunities. The training curriculum covers store operations, technical systems, business acumen including human resources, marketing, sales and financial management, as well as print services training focused on equipment, software, techniques and in-center print production.

Ongoing support

A good franchise system will not only provide a solid base of knowledge through their training program but will also prioritize ongoing support. Franchisors that establish a solid support system for owner questions, troubleshooting help or expert advice, show sustainability and higher potential for success.

Support is also available from other owners within a franchise network. If a new franchisee has a specific issue or question, more likely than not another owner has encountered a similar situation and could share their experience. For example, The UPS Store franchise owners can rely on a vast network of over 4,700 other U.S. locations for support, on top of a dedicated support team and regular opportunities to connect with other franchisees at meetings, conferences and the national convention.

Franchisee sentiment

One of the most telling insights into a franchise system is the satisfaction of its existing franchise owners. If owners are happy, that’s usually a signal of a good franchise system. Alternatively, when there is consistent negative feedback or sentiment from franchise owners, it may be a good idea to look for other options.

Take the time to research franchisee feedback before you decide to make the investment. In addition to online resources such as reviews, blogs, videos, testimonials, etc., speak with current and former franchisees to hear their insight and get a better feel for the business from someone with firsthand experience.

Brand Power

Finally, an important sign that a franchise brand is sustainable and offers opportunities for success is how well-known the brand name is. Established businesses have already put in significant effort to become a recognizable brand. This eases some of the burden on new franchise owners, allowing them to focus on operations instead of branding.

Part of the challenge of opening a new business is becoming visible to and trusted by consumers, so why not join the ranks with a brand that already has a trusted reputation? With nearly 40 years of experience, The UPS Store has become synonymous with shipping services, leveraging the globally recognized UPS® brand name.

 

While these aren’t the only signs of a successful franchise system, they are certainly important factors to be aware of when weighing your investment options. Owning a franchise can be very rewarding, but the company you choose must demonstrate sustainability. Make sure the franchisor you select shows at least these signs, and you’ll benefit from the existing strength and success of a trusted, established business.

We Proudly Support Our Veterans

We Proudly Support Our Veterans

Participating partners with the VetFran program, The UPS Store offers qualifying veterans $10,000 off their franchise fee to start their new business. To learn more, contact The UPS Store Franchise Development Team.

Ranked for 29 Consecutive Years

Ranked for 29 Consecutive Years

The UPS Store has been ranked #1 in the postal and business services category for 29 years and remains in the top 5 overall for the third consecutive year according to the Franchise 500 list.

Kristin Howard

Franchisee, Michigan

The reason my husband and I decided to go into franchising and specifically with The UPS Store, is the different opportunities we're given with the business. The UPS Store has name recognition as well as opportunities to expand.

Debbie Adams

Franchisee, Kentucky

What I enjoy most about being a The UPS Store owner is working with my customers. We are the solution specialists for our customers.

Jim George

Franchisee, Illinios

My favorite part about The UPS Store network is the camaraderie with other franchisees. Everybody loves to help everybody else. You’re really part of a family.

Greg Murray

Franchisee, Florida

The interesting thing about The UPS Store is that when a customer walks through the door there's an extremely high probability that they're coming there to do something that is important to them. So at the end of the day, what we do for customers is very important and they are trusting that we are going to do it well.

See the Full Testimonial

Mariana Huberman

Franchisee, Washington, D.C.

One of the things that I love about The UPS Store franchise system is that you're not ever in this by yourself. The franchisees of The UPS Store network are great.

See the Full Testimonial

Heidi Morris

Franchisee, Colorado

The thing I enjoy most about being a The UPS Store franchisee is I get to get up, go to work and know that I'm helping other business owners succeed in what they're doing.

Bob Brown

Franchisee, Tennessee

Owning a The UPS Store franchise has changed my life because it's finally given me the opportunity to engage my customers and my staff and be able to take real pride in what I do. As a franchisee, we get faced with solving peoples' problems every day and we do everything we possibly can to try to help.

Marie Jensen

Franchisee, Oregon

My favorite thing about The UPS Store is the variety. I love the variety of customers, I love the variety of services; getting to know the customers, meeting their needs, finding out how we can help them accomplish what they need to accomplish and seeing how happy they are. That makes me ecstatic.

Tad Mollnhauer

Franchisee, Florida

With the products and services that The UPS Store provides we can make a difference in people's lives and that is the best reason for being a The UPS Store owner.

Joy Batchelor

Franchisee, Idaho

What makes being a The UPS Store franchisee worthwhile at the end of the day is the customers. The customers treat us like we're family.

Paul Erchinger

Franchisee, Texas

One nice benefit of owning a The UPS Store franchise for me has been that it gives me the opportunity to be more involved in the community. As I make relationships with others it seems like no matter what the environment is, in one way or another business comes out of that and that's not my objective—it's been a secondary benefit to being involved in the community.

Chris Reminder

Franchisee, Ohio

There are several things that I really enjoy about being a The UPS Store franchisee. First and foremost it allows me to get to know the people in the local community and that is a lot of fun. We get to see people on a regular basis. We get to know their life stories. That's a lot of fun.

Bruce Jones

Franchisee, Kentucky

Since we have joined The UPS Store, our life has changed by just having more time to spend together as a family. We've been very fortunate with the stores that we have and we have a great staff that looks out for our best interest and we look out for theirs.

Lonnie Williams

Franchisee, Oklahoma

What makes The UPS Store so successful is it gives each individual an opportunity to grow with the network and just meet the challenges that are brought to them on a daily basis. Every day gives us a new opportunity to help another person, to help another small business, to answer a question and to solve a problem.

Jeff Graham

Franchisee, Alabama

I love my customers. I love my employees. I love every person, every face that comes into my store. I enjoy every day going into work and I can't see doing anything else for the rest of my life.

Stacie Stigar

Franchisee, Alaska

I think that this franchise is so successful because of all of the resources that are available to us as center owners—we have marketing materials, we have so many different opportunities for help from the home office, and it just really makes for a great franchise.

Don Pollard

Franchisee, New Jersey

I think the thing that makes this franchise successful is a number of things. First of all we have an outstanding system, we have a great product, a great brand, and we're able to attract dynamic people to run these centers and run the business. So I think when you put all that together it really provides for a winning combination.

Mary Ellen Nichols

Franchisee, Tennessee

The thing I love about the franchise is that you have the UPS name backing you but yet you also have the autonomy to make your own decisions to promote.

Laura Griffin

Franchisee, Florida

In the eight short months I've owned my The UPS Store it has really changed my life. I've gone from being an employee of someone else to being an employer of my associates. It's a big responsibility but it's exciting every day.

Sandy Scandrett

Franchisee, Wisconsin

Being a The UPS Store franchisee has improved every aspect of my life. It's very rewarding financially, professionally, and emotionally. I have a large number of regular customers who are really, really appreciative of everything we do.

Kristie Robison

Franchisee, Alabama

I would say owning a The UPS Store location has changed my life to where I have more time and flexibility. In owning your own business you get your store up and running and you get employees that you can trust that are going to help keep your store running. This allows me to attend my two boys' ball games and also travel and do things with them so it has really changed my life for the better.

See the Full Testimonial