Investing in a franchise can be a powerful path to business ownership—but choosing the right franchise is critical to long-term success. Whether you’re a first-time franchise investor or an experienced multi-unit operator, doing thorough due diligence will help you make a confident, informed decision.
Here are five essential steps to help you evaluate franchise opportunities and find the brand that aligns with your financial goals, lifestyle, and values.
1. Attend Franchise Trade Shows and Industry Events
If you’re early in your franchise search, franchise trade shows are one of the most efficient ways to explore multiple opportunities in one place. These events allow you to compare brands across industries, ask direct questions, and get a feel for different franchise models—from single-unit ownership to multi-unit development.
One of the most respected events in the industry is the Multi-Unit Franchising Conference (MUFC), held annually each March in Las Vegas. MUFC brings together established franchise brands, experienced operators, and investors focused on scalable growth.
👉 Learn more and register at: https://www.multiunitfranchisingconference.com/
2. Talk Directly With the Franchisor
Once a franchise brand catches your interest, connect directly with the franchisor to gather detailed information. A strong franchisor should be transparent, accessible, and eager to help you understand their business model.
Key steps include:
-
Requesting the Franchise Disclosure Document (FDD)
-
Reviewing the brand’s website and marketing materials
-
Visiting operating locations and observing day-to-day operations
When reviewing the FDD, pay close attention to:
-
Initial and ongoing fees – Franchise fees, royalties, and marketing contributions. For example, The Human Bean offers 0% royalty fees and a 1% brand fund.
-
Financial Performance Representations (Item 19) – If provided, this section may include historical sales or earnings data.
-
Franchisee obligations – Your responsibilities related to operations, staffing, training, and compliance.
-
Territory rights – Whether you receive an exclusive or protected territory and how it’s defined.
-
Litigation and bankruptcy history (Items 3 & 4) – Important indicators of brand stability.
-
Training and ongoing support – What resources you receive before opening and as you grow.
3. Research Competitors in the Same Industry
Smart franchise investors compare multiple brands within the same category. Even if you’re set on a specific industry—such as food service or coffee franchises—different franchisors may offer very different growth strategies, cultures, and investment requirements.
For example, some franchises require multi-unit agreements, while others allow you to start with a single unit and scale over time. Understanding these differences helps you find a model that fits your experience level and long-term vision.
4. Leverage Neutral, Third-Party Franchise Resources
Franchising is a well-established industry with access to many unbiased educational resources. Organizations like the International Franchise Association (IFA) offer research, data, and best practices designed to help prospective franchisees make informed decisions.
Using neutral resources alongside franchisor-provided materials ensures you’re evaluating opportunities from multiple perspectives.
5. Consider a Franchise Broker or Consultant
If you want personalized guidance, a franchise broker or consultant can help narrow your options based on your budget, goals, and preferences. However, it’s important to understand how they’re compensated.
Most brokers work with a select group of franchisors and may receive referral fees, meaning their recommendations may not represent the entire franchise market. Brokers can be helpful—but they should be one of several tools in your evaluation process.
Ready to Explore a Drive-Thru Coffee Franchise?
If you’re interested in a drive-thru coffee franchise with a proven model, strong brand loyalty, and franchisee-focused economics, we’d love to connect.
📩 Contact us at franchise@thehumanbean.com to learn more about franchise opportunities with The Human Bean.