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"That's why we always look at management strength and history before we work with a franchise," says Bingham.
If they have vision -- and capital -- they will know how to tweak the business model to change with the times.
It doesn't mean the whole segment is doomed to fail, he adds, but it does mean franchisees need to be extra diligent about picking the right flavor.
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If their experience is limited to a single widget or service, however, they may flounder and flop.
Related: Three Franchise Industries to Watch The growth can be described as "too much too soon." As with any bubble, whether it's home values or gourmet hamburgers, a sudden boom in the market is always a warning sign, says Stephen Schwanz, president of Scottsdale, Ariz.-based Franchise Capital Advisors. "Many of these places are doing really well, but there are probably five or six of them within a mile radius of where I'm sitting," he says.
But then again, other ideas that might not have screamed "long-term future" have thrived.
For instance, "when junk-removal franchises first came out, people thought nobody would pay to have their garbage removed," says Todd Bingham, vice president of operations at Fran Net, a franchise consultancy in Louisville, Ky.
The franchise is a departure from our other franchise options, which are offered...
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