4 Qualities of a Good Franchisor

Starting a small business and buying a franchise is a big decision to make. Finding the best franchisor can get confusing, as there are a lot of available options. The right one will assist you in growing the business and achieving your goals. This article discusses the four qualities of a good franchisor.

Legally registered with the Federal Trade Commission and the USA

This authorization allows the franchisor to offer a franchise business to others. The Federal Trade Commission (FTC) requires each franchisor to file an annual franchise disclosure document (FDD). Neither the franchise business or its owners or directors should have any legal or bankruptcy filings.

The FDD will provide the performance history of the franchise, and its owners, together with a list of all current and past franchisees. If you find that people have left the franchise, you need to know why they’ve left.

Proven track record of success    

You don’t want to invest in someone who is only second or third in their field, compared to the others. A franchisor should have a solid reputation in the industry they’re performing in. In addition, their concept needs to be having a trading advantage over the competition.

Additionally, the franchise should be scalable. This implies that the same techniques can be used in many different locations. Since you never know when you might be trying to expand your business and looking for new territories.

Comprehensive training and support program    

You’ll have plenty of questions, especially when you start. The franchisor should have staff who can respond quickly to any questions you may have. They should be able to train you at the headquarters, at your location, on Zoom, or by phone, whichever is applicable and relevant at the time.

Successful marketing plan mapped out    

A marketing program is essential because without marking your business locally and nationally, you won’t have any clients coming. So the franchisor must have a successful marketing plan mapped out from the time you open your business as it grows and over the months and years.

“Unrealistic promises normally are not ones that can be kept.” – Rakesh Sharma

When it comes to the business they’re offering, the investment should be reasonable, in line with the industry, and realistic. Promises that are unrealistically high are typically impossible to fulfill. Needless to say, your return on investment (ROI) ought to be sustainable.


There are good and not-so-good franchisors. A good franchisor is committed to the success of their franchisees and has a strong sense of pride in their company. You need to find the right fit for you in choosing a franchisor. A good franchisee-franchisor relationship is crucial in running a franchise business. If you need help and want more information regarding franchising, send me a message at rak@franchiseconsultingcompany.com


Do you listen to podcasts? I just launched my podcast, The A to Z of Investing in a Franchise. Building a solid business doesn’t have to be complicated, filled with regret or trial and error. Subscribe and learn everything you need to know before jumping into the franchising business!    

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