Episode #18


How To Choose The Best Franchise For You With Guest Eric Stites

Are you wondering how to find the best franchise for the investment you’re willing to make? Are you looking for an awesome tool to help narrow down your choices? Franchise Business Review is a market research firm that rates and reviews today’s top franchise opportunities. Here to talk with me about finding the right opportunity for you is Franchise Business Review’s CEO, Eric Stites.

As a previous franchisee and fellow entrepreneur, Eric brings a wealth of knowledge to the table. He’s been involved with Franchise Business Review since its inception and knows the ins and outs of the franchise process. He strives to help brands improve franchisee satisfaction while also offering a useful tool for those looking to buy a franchise. Listen to this episode of Franchise Secrets as we talk about franchise validation, emerging brands, and so much more!

Outline of This Episode

  • [0:35] I introduce Eric Steits: CEO of Franchise Business Review
  • [5:45] Franchising is a proven concept—but not easy
  • [8:05] The importance of peer validation
  • [11:00] Using reviews to understand brand culture
  • [20:48] How to find success when investing in an emerging brand
  • [27:46] Things to consider when preparing to buy a franchise
  • [30:37] How franchises feel about information being published
  • [35:15] Final words of wisdom and resources from Eric

Franchise Business Review’s Origin Story

The business was started 15 years ago when Eric was working with Dunkin’ Donuts to help connect prospective franchisees with current business owners. Franchisees were often hard to connect with and hesitant to commit time to candidates who may or may not be serious about the validation process. So Eric’s team created a satisfaction survey for franchisees to complete as a means to connect the two sides.

What started as a simple tool for franchise development became an operational tool that they could scale and utilize in every franchise. Since 2005, Franchise Business Review has worked with over 1,100 established brands to bridge the gap between franchisees and candidates. The Review also doubles as a tool to help franchises assess and develop satisfaction among their current franchisees. We also cover misconceptions about franchising in this segment, so check it out!

Choosing the best franchise for you—using peer validation

Franchise Business Review is the perfect resource if you’re researching top brands and trying to decide the route to take. They supply detailed reports of many franchises—covering training and support, core values, financial opportunities, and so much more. Check out the methodology they utilize to determine their Franchisee Satisfaction Index (FSI) score to better understand their process.

All of their data is sourced directly from current owners and operators. You’re able to gain insight from entrepreneurs who have been in the business for years without having to play phone tag with busy business owners. With lists of the top franchises, detailed free reports, what makes the brand unique—and more—they’ve positioned themselves as a top resource for those looking to buy a franchise.

What to look for in an emerging brand

According to Eric, Franchise Business Review will work with and survey a franchise when it has 10 established locations—which by most standards is still an emerging brand. This allows you to take advantage of their reports if you’re interested in a brand that’s new to the market. So what should you look for when considering a brand that you are unfamiliar with or has a short history?

Make sure you do in-depth research and analysis. Take a deep dive into the Franchise Disclosure Document (FDD) and be familiar with the business expenses. It’s a good sign when the franchise is reinvesting its profit back into the company. Also, look at the team involved—do they have an extensive background in franchising? In business? An emerging brand is a different type of investment, but if you know the risk profile you’re ahead of the game. Keep listening as we go into detail about this important process.

Why your spouse needs to be involved in every step

I started this podcast to be a resource for people interested in buying a franchise who want to invest in learning about the process first. Let’s be honest, most people think they want to own a franchise, but don’t realize everything entailed in owning and running a business. Something that is often overlooked is the impact of business ownership on spouses and family.

Your family needs to be aware of and involved in the process from day one.

Your level of involvement in a franchise can often be overwhelming when you’re starting. It’s important that you and your family are aware of what owning the business is going to be like. Even in the beginning stages of research and narrowing down franchises available to you, your spouse should be part of the decision-making process—so things aren’t halted weeks down the road. For more than just a snapshot of our conversation, listen to this whole episode of Franchise Secrets now!

Resources & People Mentioned

Connect with Eric Stites

Connect With Erik

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