How to Identify A Lucrative Franchise Opportunity

It’s no secret that starting a business from scratch can be a colossal undertaking. Buying and growing an already established franchise from a reputable platform such as Franchise Search Engine is a compelling alternative with several advantages.

For instance, there’s far less risk in terms of capital and liability. You also have the ongoing support of a large business network and training is usually included, making it suitable for less experienced entrepreneurs. Moreover, you don’t have to invest as much – if any – time into building a brand image and reputation. You can also hire a franchise marketing agency to help you to drive customers into your stores.

But in the diverse franchising industry, it can be difficult to identify the right opportunity. Not only does it need to be profitable, but it should also be a good fit for you as the owner of the business.

Following are some points to help you find the most lucrative franchise opportunity available to you. Let’s start by outlining how you can determine what will best fit your skills and experience.

Know Thyself

Take a step back and consider the long term.

Why are you doing this? Aspiring entrepreneurs buy into franchises for different reasons. Think about how much money you expect to make. Do you want to own numerous franchises? If not, will one business generate enough income to support the lifestyle you want? Are there any other commitments that are demanding your money or time?

How much can you invest? Take inventory of your capital. This will help you develop a more realistic idea of the business you can invest in. Don’t forget about the first few months of building the company – it probably won’t be profitable on the day you open the doors.

What are you good at? Of course, it would be wise to move into a franchise where you know what you’re doing. Being knowledgeable about the product or service and how best to deliver it will go a long way in helping your business succeed. Can you manage people? Many (but not all) franchises employ low-wage workers with high turnover rates.

These questions should narrow down your search. Remember to be honest and realistic with your answers.

Unit Growth

The overall growth of the franchise can give you an idea of how well it’s performing. Analyse the amount of units (locations) that the brand has built in recent years. Don’t forget to factor in how many were lost. Sales per unit is another useful figure, but it’s often difficult to find as most franchisors don’t disclose the information.

Checking out the annual revenue can provide another basis for determining profitability. That said, a small investment business will likely have too few units to draw any insightful conclusions from. Money isn’t everything, either. The following factors can reveal more information.

Ongoing Support

How is the franchisor willing to help you succeed? What kind of resources do they provide? For instance, is there any training, franchise marketing system, or are you just thrown into the deep? A good franchisor will provide assistance in areas such as marketing, recruitment and customer acquisition. Some even provide free equipment.

The franchise disclosure document (FDD) should have these details, which brings us to our next point.


Successful companies provide their potential franchisees with comprehensive documentation.

In it you should find manuals or guidebooks for operations, training, and procedures. Either that, or a learning management system. Proper documentation includes advertising assistance such as examples for websites and social media profiles. There should also be brand consistency guidelines and collateral related to marketing campaigns.

This aspect speaks for the level of support you can expect when working with the franchisor. They should be keen on investing time and resources into seeing their franchisees prosper.


In a similar vein, take a look at the franchisor’s pitch. What kind of benefits do they promise? What are the sales figures? You can find this type of information on a website that’s dedicated to listing franchise opportunities. Franchise Local is a great option for finding a business for sale UK, as they offer an extensive list of franchises that can help you start a business with £1000 UK, with an ever-growing number of options for business owners with higher budgets as well. If you’re looking for a small business for sale, then their website, specifically tailored for those seeking a business for sale in Mackay, is the place to go. Each listing is fully-detailed with all the information you need to know about the franchise.


Even if the franchise is popular among consumers, it needs to be in a location where it can generate a stable and regular income by being easily accessible to its target market. The area should be safe and if applicable, easy to park near. A restaurant in a dead mall on the outskirts of town, for example, is probably not worth investing in.

So, what else makes for a lucrative franchise opportunity? Don’t forget to consider local competition and the industry of the franchise. With proper due diligence, you should be able to find the perfect franchise for your needs.

Are you ready to browse franchise opportunities?

If you are ready to start your search to find your ideal franchise opportunity, we recommend using a franchise directory for this, such as Franchiseek South Africa. This will allow you to find your perfect franchise by your investment level, industry, and location. Another reason to use their directory is they also provide plenty of helpful franchising guides completely free of charge, allowing you to make an informed decision before signing the dotted line.

The views expressed in this article are those of the authors and do not necessarily reflect the views or policies of The World Financial Review.