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Getting the Most out of Franchise Expos

© Michele Marrinan

Charles Amundson knew he wanted to buy a fast-food franchise when he attended a franchise expo in St. Paul, Minn., seven years ago. What he didn't know was which franchise. By the time he left the expo that day, he had pretty much settled on Cousins Subs.

"I pretty much knew that I wanted a fast-food franchise," Amundson says today. "The expo gave me an opportunity to do comparisons and to talk to people. I used to go to the library and pick up the federal government publications on all the different franchises. It doesn't really give you the same feel as talking to a live person."

Franchise expos were big business back in the mid 1980s and early 1990s. Though many such shows are now a cross between franchise show and a business opportunity showcase, expos serve a purpose for many prospective franchisees.

The expo Amundson attended gave him an opportunity to get what Jim Ludwig, director of franchise development at Cash Converters, calls a "feel" for Cousins. Amundson liked the company's Midwest roots and he liked the fact that Cousins runs corporate stores. "They're not just selling franchises," he says.

"I think that one of the things that an expo does offer in a positive sense is it gives people a feel for what kind of business they think they'd like to get into, more than the interent or a print ad does," says Ludwig. "But only if they ask the right questions."

One of the first questions most prospective franchisees ask is "What's my initial investment?" The next is usually, "How much can I make?" Both questions, says Ludwig, should wait until after questions about business culture, operational hours, etc., have been answered.

"Before they worry about how much money they make or invest, they should take a look at what they would like to do," says Ludwig. "You're going to own your own business. Why not own one that you're going to love to get up to each morning?"

Once you've decided on an industry, be it fast-food, business services or specialty retail, you can get down to investment, franchisee fees and returns. The key, says Ludwig, is to set a goal from the outset. Don't use the expo as an afternoon's entertainment. Use it as a way to identify your preferred industry and to choose several potential systems.

"Franchise expos are a haven for dreamers," says Ludwig. "These are people who hear about a show and say, 'that might be cool. I've got nothing to do this afternoon.' They go through the show and dream."

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