Buying a franchise is a major decision. With thousands of franchise brands available across dozens of industries, knowing what to look for can make the difference between long-term success and unnecessary risk.
In this article, we’ll cover the five most important things to look for when buying a franchise — so you can choose the right opportunity for your goals, budget, and lifestyle.
1. Look for a Proven Franchise Business Model
One of the biggest advantages of franchising is the ability to follow a proven business model. But not every franchise has a reliable track record.
When evaluating franchise opportunities, look for:
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A history of performance across multiple markets
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Clearly defined systems for operations, marketing, and training
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A well-documented Franchise Disclosure Document (FDD)
A strong franchise business model helps reduce guesswork and gives you a clear path to follow from day one.
2. Evaluate Franchise Support and Training
Franchise ownership is about more than just using a brand name — you’re also paying for ongoing support and guidance.
Before you invest, ask:
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What type of initial training is included?
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Is there marketing support at launch and beyond?
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How does the franchisor help with hiring, technology, or operations?
Franchise brands with strong support systems are more likely to help new franchisees succeed early and grow long-term.
3. Understand the Franchise’s Unit Economics
One of the most important things to look for when buying a franchise is the business’s unit-level economics — or how each location performs financially.
Pay close attention to:
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Average unit volume (AUV)
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Startup investment vs. earning potential
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Breakeven timelines and operating margins
Review Item 19 of the FDD to see historical performance data. A franchise can’t guarantee income, but they can show you how other locations have performed.
4. Make Sure There’s Available Franchise Territory
Franchise territory availability is often overlooked — but it’s a key factor in your ability to grow.
Before moving forward, ask:
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Is my preferred city or region available?
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Are nearby markets open for expansion?
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Can I speak to existing franchisees in surrounding areas?
Many top-performing franchises have limited open markets, so early action is key.
5. Choose a Franchise That Aligns With Your Goals
The best franchise for someone else may not be the best franchise for you. Choose a business that matches your lifestyle, experience, and long-term goals.
Consider:
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Owner-operator vs. semi-absentee roles
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Service-based vs. retail or location-based models
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Flexibility, scalability, and exit potential
You’re not just buying a business — you’re buying into a lifestyle and future income stream.
Final Thoughts: What to Look for When Buying a Franchise
There’s no such thing as the perfect franchise, but there are smart ways to evaluate the right fit for you. When you focus on the fundamentals — a proven system, strong support, solid unit economics, and available territory — you can invest with more confidence.
