What type of research have you done on franchises? What are the best sources of information? What should you look for? We are in the process of considering one and any help would be great. Thanks.

There is a lot of published information that you can get by just googling them but I think one of the most important documents you can look at is the UFOC it contains their operating model.

What is a UFOC?

UFOC = Uniform Franchise Offering Circular

If it is a public company you could look at their 10k but the best thing you can do is call existing franchises and try to get a sense of their profitablity and their relationship with the Franchisor

You may find that existing franchisees may be unwilling to "spill the beans" out of fear of reprisals by the franchisor. In fact, in one instance (in Australia) franchisees indicated that they feared being sued by the franchisor if their feedback to a potential franchisee resulted in that person not proceeding with the franchise.

There are numerous websites out there that franchisees use in order to air their grievances. Of course, in looking at the comments reflected on those websites you will have to decide which show the franchisor to be fundamentally "bad", always remembering that in even the best businesses/ franchises there will be an "unhappy" customer at some stage. A pattern soon emerges.

Have a look at this one to start Rip Off Report. If you keep trawling you're sure to find others.

Michael Marcus
Franchisees Advocate Group

Here's a great article on how to evaluate a franchise: How To Evaluate a Franchise Opportunity