Investigating the Franchise Opportunity Hiring the Services of Consultant -Two considerations help in short-listing -A potential franchisee should think of available business opportunities. appointing consultants who can guide through 1.) Selection of a sector or an industry the entire process of market potential depending upon the liking and interest of a assessment to location planning, acquisition and potential franchisee, and suitability with the establishment of a franchisee. personal qualities of a franchisee. 2.) Assessment of financial requirement to Hiring the Services of Legal Advisors operate a franchise and ability of a potential -Setting up of a franchise involves complying franchisee to augment necessary financial with multiple legal requirements. resources. “The Four ‘R’s of Legal Advisors” Selection of Sector/Industry What are the industry’s economic traits? 1.Realism- the franchisee should be very Market size and growth rate at unit realistic in assessment of his business strengths level and also at national level and weaknesses. Scope of competitive rivalry and its 2.Resources- many franchisees, during the early intensity at unit level periods of their business when resources Number of players and key advantage constraints are common, tend to sometimes each one of them offer overlook sending in the royalty payment to the Buyer needs and requirements franchisor. Pace of technological change in the 3.Research- research on the franchisor is a must industry for the success. 4.Resolve- resolve to be part of the franchising Degree of product differentiation system. (Lanie’s Report) Criteria for Overall Evaluation Knowing the self Knowing the financial strength Knowing the industry and the franchisors Processing the information available Determining for what the payment is to be made Preparing for the interview Meeting the existing franchisee