Franchise Comparison Worksheet
Use this worksheet to help you determine the attractiveness of each franchise you're considering.
1. Assign each franchise to a column.
2. Assign a rating of 1-3 for each question asked, with 3 being the strongest.
The franchise with the highest score is the most attractive.
Franchise
The Franchise Organization A B C
Does the franchisor have a good track record? 1 2 3
Do the primary leaders of the franchise have expertise in the industry? 1
Rate the franchisor's financial condition. 1
How thoroughly does the franchisor check its prospective franchisees? 1
Rate the profitability of the franchisor and its franchisees. 1
Total Franchise Organization Score 5 2 3
The Product Or Service A B C
Is there a demand for the product or service? 1 2 3
How seasonal is the product or service? 1
Are industry sales strong? 1
Rate the product or service in comparison to the competition. 1
Is the product or service competitively priced? 1
What is the potential for industry growth? 1
Total Product Or Service Score 6 2 3
The Market Area A B C
Are exclusive territories offered? 1 2 3
Can you sell franchises in your territory? 1
Rate the sales potential of the territory you are considering. 1
Is the competition strong in this area? 1
How successful are franchisees in close proximity to this area? 1
Total Market Area Score 5 2 3
The Contract A B C
Are the fees and royalties associated with the franchise reasonable? 1 2 3
How attractive are the renewal, termination and transfer conditions? 1
If the franchisor requires you to purchase proprietary inventory, how useful is it? 1
If the franchisor requires you to meet annual sales quotas, are they reasonable? 1
Total Contract Score 4 2 3
Franchisor Support A B C
Does the franchisor help with site selection, lease negotiations and store layout? 1 2 3
Is the training program effective and does the franchisor provide ongoing training? 1
Does the franchisor provide financing to qualified individuals? 1
Are manuals, sales kits, accounting systems, and purchasing guides provided? 1
Does the franchisor sponsor an advertising fund to which franchisees contribute? 1
How strong are the franchisor's advertising and promotional programs? 1
Does the franchisor have favorable national contracts for goods and services? 1
Total Franchisor Support Score 7 2 3
A B C
Total Score 27 10 15
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