This lesson is part of our free Franchise 101 course.
When you’re looking at what franchise to work with, it’s easy to get hung up on a single piece of information, like average annual revenue, and think that will tell you which franchise you should work with. But if you want to pick the best franchise for you, then it’s important to combine different sorts of data, even if this makes more work.
The Benefits of Combining Franchise Data
A single piece of information about a franchise can never give you the whole picture. Sure, revenues might be great, but does that equate with profits? Does a figure represent good earnings compared with other franchises, or just by comparison with other jobs you’ve had? Are this year’s profits representative of regular performance, or are they a fluke?
Combining a lot of data, looking at different franchises and different measures, gives you a rounded picture. It lets you see an individual franchise from different angles, to see its weaknesses as well as its strengths, and to compare it with others in the same sector.
Combining franchise data is like replacing a 1950s black-and-white TV set with a modern flatscreen: the picture is so much clearer, it doesn’t even bear comparison.
The Challenges of Combining Franchise Data
That said, combining this data isn’t easy. While most franchises publish data on revenue, profit, and other measures, it can be scattered and obscure. Finding it takes time and effort.
It also takes a lot of effort to understand what the data means and how comparable it is. When two businesses talk about profits, how much are they talking about the same thing? Have they taken into account the same expenses? Are you really looking at comparable figures?
With effort and experience, you can learn to see the differences. With a lot of time, you can gather this information for yourself. But that’s a lot of time and effort that could have been saved for working on the business you’re about to set up.
Making It Easier for You
That’s why Franchise Chatter’s lists can be so valuable to you. With our revenue and profit rankings, you get to see the full range of franchises that are performing well along with those you might be better off avoiding.
These two lists represent the quickest and easiest ways to get a bird’s eye view of the entire franchise landscape. Months of work have been done for you, applying the expertise and experience that comes from years of evaluating franchises. We provide objective data and analysis about many more franchises than you could ever cover on your own.
Because I’ve been through franchise hunting myself, I’ve organized the information in a way that makes sense to prospective franchisees. I know what information you need to look at, and I’ve boiled it down to rankings that will help you. So check out our rankings by revenue and profits to gain a rounded perspective on all the franchises you might be interested in.
Combining data is essential to picking the right franchise, and with the hard work done for you, you can enjoy its benefits without the challenges.