Article featured in Franchising Magazine USA
When aspiring business owners choose to join a particular franchise, they’re making a significant investment. It’s a financial investment and a long-term investment of their time and entrepreneurial energy. Prospective owners want to take every precaution to ensure this investment is a sound one.
A good starting point is to vet franchise opportunities carefully. While it’s impossible to predict the future, franchisors should provide plenty of financial data that demonstrate the historical success of their model. From there, prospective owners can extrapolate their own odds for success.
Another data point to consider is industry recognition. Examples may include awards, rankings or placement on “best-of” lists. These accolades can serve as valuable signals about a franchise’s culture, credibility and long-term potential.
Whether it’s Entrepreneur or Franchise Business Review, legitimate publications and market research groups are meticulous in how they assess potential honorees, sizing them up not just by their sales pitches but by quantifiable data.
For example, lists denoting the most profitable or fastest-growing franchises usually require honorees to submit significant reporting, disclosing things like the minimum startup capital required or the average annual income for franchise owners.
Other data points considered can encompass survey results from current franchise owners, covering things like trust in the franchise system or overall owner satisfaction.
For aspiring franchise owners, this third-party validation offers reassurance that the franchise has been vetted against a wide range of competitors. It’s a way of establishing that the brand has proven itself. Rather than taking only the franchisor’s word, prospective owners can rely on independent, fact-based assessments as part of their due diligence.
Awards and best-of recognition can attest to a franchise’s credibility. In an age where some franchises are based on trends or fads, this can be crucial information for potential owners who desire a franchise that will last.
Yet, industry recognition isn’t just about credibility. Some lists and awards can provide important windows into a franchise’s culture, allowing potential owners to verify alignment with their own values or preferences.
For example:
For aspiring franchise owners, in particular, culture matters. A franchise that invests in its owners and fosters collaboration is more likely to help them navigate challenges, adapt to change and build sustainable success. Industry awards and best-of recognition can provide a meaningful glimpse into franchise culture.
It’s crucial for potential owners to remember that not all awards carry the same weight. Prospective franchise owners should carefully evaluate the source and criteria behind each recognition. Here are key factors to consider:
It’s equally important to remember that, while industry honors are meaningful, they don’t tell the full story of any franchise brand. Rather, they represent one piece of data, which should be evaluated alongside things like the Franchise Disclosure Document (FDD). Speaking with current owners at franchise validation events can also be useful when assessing the way forward.
For anyone weighing franchise opportunities, awards and industry distinction can serve as trusted guideposts. They reveal much about a brand’s culture, credibility and long-term viability, factors that are often difficult to assess from the outside. By prioritizing award-winning franchises and carefully examining the significance of those accolades, entrepreneurs can feel more confident about their choices.
For aspiring franchise owners, industry recognition is more than a badge for the franchisor. It’s a tool that empowers you. Joining a brand with a proven record of accolades gives you instant credibility in your community and strengthens consumer trust from day one. If you’re ready to invest in your future, aligning with a franchise that has earned industry honors is a great first step.
Missy Wright is Vice President of Franchise Development for Five Star Franchising, an innovative, growing platform of home service brands, including Five Star Bath Solutions, Gotcha Covered, Bio-One, 1-800-Packouts, Card My Yard, and Mosquito Shield. She has more than a decade of experience in franchise development and sales, including leadership positions with successful franchise brand platforms. For more information, visit fivestarfranchising.com.