Franchise Comparison Spreadsheet

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									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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