Before You Invest

Due Diligence

Before making any serious business decision, a series of due diligence steps must be completed.

  • As an “active” investment, franchising requires not only a substantial financial commitment, but also the investment of time, energy, credit, entrepreneurial talent, and emotional reserves.
  • A thorough review of the company’s FDD and licensing contracts are necessary, but will only give you part of what you need to know.
  • Prior to devoting your resources to investigating a franchise opportunity, make use of the work which has already been done:  the FRI research report.
  • Our independent assessment of franchisee opinions will tell whether or not the franchise opportunity being considered has the enthusiastic endorsement of its own franchisees.

 

Focus on Franchisee Success

Our research has shown repeatedly that the greatest predictor of a franchisee’s success is the quality of their interdependent relationship with the franchise company.

  • The franchisee depends upon the franchisor to provide not only an end product, but also expert guidance and assistance in setting up and running their franchise business.
  • The more effective a franchisor is at sharing knowledge and lending support, the greater the likelihood that a franchisee will be successful.
  • The best franchise systems make franchisee success a priority.

 

Go Straight to the Source

Only the “Best of the Best” franchise opportunities have earned World-Class Franchise® certification.

  • They have an empirically proven commitment to their franchisees’ success.
  • These franchise systems must have franchisees which are energetic, engaged, profitable, and enthusiastic about the future of their franchise businesses.
  • The World-Class Franchise® seal is your best assurance that this potential franchise investment is a good one!

Franchise Research Institute®

The Franchise Research Institute was founded in 2002 to study and promote excellence in franchising, performing franchisee satisfaction research throughout the U.S. and internationally. World-Class Franchise® opportunities must demonstrate that they are endorsed by their franchise owners through FRI’s scientific, confidential, third-party surveys.

World-Class seal for website

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