The operating model changes how you spend your time, use capital and carry risk. Compare these questions alongside the brand and industry.
New or existing franchise
A new location needs evidence for the ramp-up assumptions. A resale needs verified trading records, transfer rights and a plan for customer and staff continuity.
Mobile, home-based or premises
Compare travel time and vehicle downtime with rent, fitout and occupancy commitments. Home-based does not mean that training, marketing, equipment or working capital are free.
Owner-operated or managed
Record the tasks performed by the seller and price the labour needed to replace them. Do not describe a business as passive because a manager is already employed.
Single site or multiple sites
Review each location, central overhead and management capacity separately. Network growth can increase capital requirements and complexity before producing additional distributable cash.
Compare franchise and independent ownership
List the support, rights and operating restrictions received for each recurring charge. Assess the alternative cost of building those capabilities independently, using the actual offer and evidence rather than assuming either route is superior.