Step Four - Research The Industry

Although we divide franchises into 10 main categories (see our Directory), there is likely to be a franchise available in almost any industry that interests you. That’s good news – you’re going to be working hard so it’s important to enjoy what you do. Expect to be in the business for at least three-five years. Exiting earlier is possible, but not usually profitable.

Research your chosen industry well. Read the trade magazines, talk to people in the business and find out the trends. How will new technology or the Internet affect it? How big is the industry in New Zealand? Which franchises operate within it? Talk to them all. You’ll learn more that way and it’s important to find a company where you ‘fit’ and share the vision. If you don’t like the people, don’t buy the franchise.

If a franchise is targeting a niche part of the industry, is the niche big enough to sustain your business? Overseas franchises sometimes find that, because our population is so small, niche products are not viable. That’s why, for instance, we don’t have Mexican food franchises here although they are hugely successful in other countries.

Essential reading
Lost in Translation