Does anyone have experience with franchises?

April 22, 2025

by a searcher from Carnegie Mellon University in Toronto, ON, Canada

I am looking to buy a junk removal and moving services franchise. Was wondering if anyone had any experience with something similar?

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Reply by a searcher
from Carnegie Mellon University in Phoenix, AZ, USA

Not sure if this is worth much. I just bought into a franchise after reviewing a number of them. Here are my thoughts: 1. Speak to a lot of franchisees. On the FDD you can find a list of all franchisees, including those who have left. Randomly call and ask about their experiences. Include those who have left. You can find historical FDDs here: https://www.franchimp.com/ Things to ask: - what value does the franchisor bring - how can they compete against independents who don’t have franchise fees - problems they have encountered with franchisor - relationships with other franchisees. - would they do this again starting today 2. Look at the franchisor’s financials 3. Look at territory size and restrictions 4. Strongly suggest a long history for the franchisor 5. If you see large numbers of former franchisees, that is a major red flag in my mind. Another reason to look at multiple years of FDDs. 6. look for any legal issues in the FDD 7. Is the franchise owned by a PE firm? If so, ask the franchisees if that has created any problems. The PE firm likely plans to sell within a few years (or sooner) - so that might create its own problems.

Reply by a searcher
from Wilfrid Laurier University in Hamilton, ON, Canada

I have experience owning 2 franchise locations in the fitness industry and consulting on a few due diligence efforts for franchises in other industries. Nothing similar to junk removal or moving services, but realistically there is a lot of advice that can be shared that is applicable to all franchise purchase considerations regardless of the industry. What advice are you in search of?

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