There is a painting franchise that checks numerous boxes. The company’s image is professional. The business plan makes sense. You are intrigued by the field. You might see yourself playing the role of the manager.
You discover that there are three franchises under the same brand within the area you wish to work in, as well as several other painting franchises. The existing franchisee also controls more areas than you expected.
The chance isn’t necessarily bad because of this.
It doesn’t mean you’ll need a map sell.
The other part is to understand what market it is in which the business would actually operate. Understanding the market where the business will operate is the second part.
A National Brand Becomes an Local Business
Franchises are typically presented on a brand level. The buyers are taught about the concept, support system and opportunity.
Customers, however, are not interacting with the company on a nationwide scale. They hire local people.
That makes territory research especially useful for home-based service businesses such as painting. Someone investigating painting franchises AL opportunities, for instance, should want to know the brands that are operating within the Alabama metro area being studied.
Franchises that offer painting NC are also subject to the same principles. The company’s nationwide footprint informs you that it has a presence in. However, this doesn’t reveal the brand’s presence within the North Carolina area where you would like to establish a business.
Before You Franchise addresses the problem by keeping track of painting-franchise activity across five metros within North Carolina and five in Alabama.
See where the Brand Is Actually Growing
Growing franchises may sound attractive, but they are only useful when you know where the growth is occurring.
A location listing provides a snapshot. After repeated observations it is possible to notice changes.
Based on the data provided, Before You Franchise scans paint franchise brands’ location lists each two weeks. That creates another dimension for painting franchise research: prospective buyers can examine who is already present and how brand footprints are changing instead of relying entirely on a static impression.
Imagine two franchises that appear similar on the surface.
One is constantly adding places throughout the metros you’re looking at. One of them has a massive geographical footprint, yet there’s not much movement within the markets you’re thinking about.
That doesn’t tell you which franchise to purchase. It will give you more questions to consider.
Why are you expanding? Are territories still available? Who is the franchise owner? What information is provided in the disclosure document? What are the opinions of past and current franchisees about the business?
Research should help reduce uncertainty however, it shouldn’t create certainty.
Ownership adds context to the Dots on the Map
Two independent franchisees don’t have to be required to have two locations.
One operator is able to control multiple territories or locations. The knowledge of who is responsible for existing operations adds context to the simple calculation.
Multi-unit ownership for instance, might prompt a prospective buyer to look into the reasons why an existing franchisee was able to expand. In the same way it may raise concerns about the scope of remaining territories and the local competition.
It is not recommended to draw any conclusions solely based on the information about ownership.
This is an important aspect of how to research before buying a franchise: each bit of information can be used as a starting point to ask a question, rather than proving that an opportunity is good or not.
If a market isn’t occupied does not necessarily mean that the space is not available
A franchisor might have a territory that is available in a city where other painting brands already operate.
Those are two different facts.
The territory issue is related to the franchise system you’re looking at. The market is a broader issue. Which other companies offer similar services? Which franchise brands are available? How established are they? Is the field becoming more popular?
Before You Franchise was designed by an ex-franchise broker and uses AI researchers to analyze locations of franchises that are painted across its monitored markets. Buyers will benefit from its focus on growth, ownership and brand locations.
This shouldn’t be the end of the franchise due to diligence.
This is a great opportunity to start asking more questions.
A franchise may sport a striking logo, a captivating presentation and even a region that is designated as “available.”
Comparing more than the brand’s recognition and franchise fees is crucial before committing capital. Review the current locations, ownership patterns local competitors, territory availability, and recent expansion activity. Research on franchises that is thorough will provide you with more information about the current market conditions and provides you with better questions you can ask franchisees as well as franchisees before making a long-term investment decision.