Does Money Matter? The 3 Things That Determine Your Best Franchise Fit

From Episode 311 of the Franchising 101 Podcast with Tim Parmeter

Does money matter when you’re choosing a franchise? Of course it does.

But if you chase the money, or the perceived money you think people are making in a particular franchise, and that business doesn’t match what you want to do every day, it doesn’t include the type of people you want to surround yourself with, and the franchisor’s people, culture, and support don’t align with yours, you’ll never reach the level of success and happiness you desire.

The money always follows the fit.

So how do you find the fit? It comes down to three things, and they’re probably not the three you’d expect.

First, the Two Non-Negotiables

Before we get to the three, here are the two basics that apply to every franchise and every owner:

1. Follow the plan.
2. Put in the required effort.

If you can’t or won’t do those two things, stop here. Franchise ownership isn’t for you. It sounds simple, but we can all mess up simple.

What It’s Not

When I ask people what matters most in picking a franchise, I hear the same answers:

• “I’ve always worked in this industry, so it needs to be in that industry.”
• “I love puppies, so it needs to be a pet business.”
• “I want the hottest franchise in the hottest industry.”
• “I need something recession-proof.”
• “I want whichever one makes the most money.”

Maybe one of those lines up for you, but usually not. None of them is what determines your best fit.

The 3 Things That Determine Your Best Franchise Fit

1. The Owner Role

You’re the owner. You’re the one getting out of bed every day to run this business. That’s true even if you are running it as a semi-absentee owner while commuting to your current job. You still need time during the day to run it.

So what will you be doing every day? It needs to be what you do best and what you want to do. If those don’t line up, you’ll struggle as an owner.

Owning a business should feel like “I get to go do this,” not “I have to go do this.”

And it has to be what you want. Not your friend’s idea, your brother’s, or your cousin’s girlfriend’s uncle’s. This is one of the most personal, individualized decisions you’ll ever make, right up there with getting married.

2. The People in Your Unit

Every franchise owner has a unit: a physical location, a territory, or several of either. The people in that unit fall into three groups.

Your staff. In almost every case, you’ll build a team. What kind?

• Unskilled or skilled labor?
• Sales and customer-facing people?
• A manager? Subcontractors?
• A big team, a small team, or something in between?

It’s a bit of a Goldilocks exercise. There’s a right answer for you, and it’s different for everyone.

Your customers. Every business needs them, and every owner has a sweet spot. Who’s your customer profile? Why do they buy from you, who do they buy from within your business, and how often?

Your community. When you’re out talking about your business, you should light up. It could be the least glamorous business in the world: cleaning restaurant bathrooms, scooping dog poop, serving great food. That doesn’t matter. What matters is that it aligns with you. You’ll be wearing a shirt with that logo on it. It’s your baby.

3. Franchisor Alignment

This is not about industry. Industry is one piece of the puzzle. It’s not even a corner piece. It’s an edge piece at best.

Franchising is a people business, so franchisor alignment is about their people:

• Leadership: who’s running the brand?
• Culture: it gets called a buzzword, but every business, like every household, has one.
• Training and support: every franchisor trains and supports its owners, but they all do it differently and put the emphasis in different places.
• Other owners in the system: often one of the most powerful support networks you’ll have.

Whether it’s a small system with a handful of corporate staff or a large organization with whole departments, you need to feel like you’ve found your people. This is essentially your extended family now.

Nobody should say, “I hate what I’d be doing every day, I can’t stand the people, and I don’t like the franchisor, but sure, let’s sign.” Just no.

Where Money Fits In

Notice what wasn’t on the list: money.

It’s easy to get pulled in by flashy pitches, like “the hottest thing,” “the best opportunity,” or big numbers thrown around to get your attention. Don’t let those be what decides it for you.

Focus on you. This is one of the few times in life you’re supposed to be selfish. When you are, the three things become clear:

1. Owner role: what you’re doing every day, what you’re good at, and what you enjoy.
2. People in your unit: your staff, your customers, and your community.
3. Franchisor alignment: their leadership, culture, training, support, and other owners.

Get those right, follow the plan, and put in the effort, and you’ve stacked the odds strongly in your favor. The money follows the fit.

How You’ll Know You’ve Found It

When you’ve done this work, you won’t have to agonize over the decision. You’ll reach the end of vetting a franchise and think, “Yes. This is the one.” And the franchisor will be saying the same thing about you.

That’s when you know you’ve found your fit.

Ready to find your best franchise fit? The FranCoach team helps you work through all three of these, at no cost to you, ever. Connect with FranCoach →

Frequently Asked Questions

What’s the most important factor in choosing a franchise?
Fit, which comes down to three things: the owner role (what you’ll do every day), the people in your unit (staff, customers, community), and alignment with the franchisor (leadership, culture, training, support, and other owners).

Should I choose a franchise based on industry?
Industry is one piece of the puzzle, but it’s rarely the deciding factor. The daily owner role and franchisor alignment matter far more.

Should I choose a franchise based on how much money it makes?
Money matters, but chasing perceived earnings instead of fit usually backfires. The money follows the fit.

Does a semi-absentee franchise still require my time?
Yes. Semi-absentee still means consistent weekly time running the business, and you need to put in the hours the model requires.