Individuals or companies seeking to invest in a franchise should use this Franchise Comparison Worksheet to help determine the attractiveness of each potential investment. This worksheet allows the investor to rank each criterion on a scale of one to three. The investor should rank the franchise organization, the product or service, the market area, the franchise contract, and franchisor support. This template comparison chart can be modified to include additional information that a potential franchise investor would like to consider.
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 © Copyright 2013 Docstoc Inc..
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