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Can Franchise Direct Be Trusted For Buying a Franchise? (2022)

Written by: Vetted Biz Research Team
Last Updated by Rocío Torres: August 9, 2022
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franchise direct

In this analysis, we are going to look at Franchise Direct and talk about why it is not the best tool to use when starting your initial search for a franchise. Our analyst has looked at the website and performed a review of the top 10 offerings on Franchise Direct to spot potential problems with them.

Contents

Right off the bat, we notice that the website is not very uniform which makes it an unpleasant browsing experience. The colors used on the landing page of the website have bad contrast which makes the information difficult to follow. That said, the website is laid out uniformly and it is easy to access all the options that the website provides at the top of the page. The interface is also very smooth which adds to the positive experience on the website. 

franchise direct

Franchise Direct Promotes Failing Franchise Systems

Not to mention Dickey’s Barbeque Pit and 9Round (prominently displayed on the home page), have a very high three year failure rate compared to other franchises.

Over the past 5 years, Dickey’s has closed more locations than they have opened:

Franchise Data

YearStart of YearUnits OpenedUnites ClosedEnd of Year
20165459071564
201756472110562
201856272110524
20195245883497
20204973871462

Franchise Direct Markets Business Opportunities as Franchises

An important thing to note is that some offerings on Franchise Direct are not franchises. For example, when you go to search and look at the top choices the website provides you, Delivery Developers, Healthy YOU Vending, and Healthier 4U Vending are the top three recommendations but they are not franchises at all. This is very misleading. That said, let’s look at the top 10 offerings and analyze them. The first franchise offering after all the business opportunities being advertised as franchises is ClaimTek Systems – however, there is no mention of a franchise on ClaimTek’s website or any other reputable source on the web.

franchise direct

Delivery Developers

Delivery Developers is a restaurant and grocery delivery business. The website does not say much about how the business operates and functions other than that they assign you a zone where your restaurants can deliver through its app. To be honest, the information on this is sparse and a quick Google search shows that the business either does not have a website or it does not show up on the first page. This casts a lot of doubt on the business.

Healthier 4U Vending

Claims to provide superior machine quality, complete hands-on training, & cutting-edge locating services. The opportunity has several different levels of investment available, which they advertise so “you can become an independent owner/operator of these artfully nationally branded machines”. There are testimonials and promotional videos available on Franchise Direct, which give this opportunity more credibility than the last one.

Healthy YOU Vending

Is almost the same offering as Healthy 4U. The business is the same, you buy at a “wholesale price” from the company and sell at “retail prices” to the end customer.

SiteSwan Website Builder

Promotes itself as a “turnkey platform that includes everything you need to start building and selling websites to local businesses with no technical experience required. As a SiteSwan Website Reseller, you set your own prices and you keep 100% of the sale. You pay just a flat monthly licensing fee to use our software”. This is more of a freelance business opportunity than it is an actual business as you are basically hiring software to create a website and selling them on your own. There is no established brand that helps you.

SocialOwl

Markets itself as a one-stop solution for launching your own social media presence. The listing does not say at all how the business works or what you need to succeed.

ClaimTek Systems

Is a software business where you will sell billing software to doctors and dentists. Its website is poorly designed for a software company that claims to have over 25 years of experience in the software industry.

franchise specialists

Your CBD Store

Yout CBD Store is the first franchise on the list. It provides herbal and nutritional supplements containing lawful CBD “cannabidiol” from industrial hemp to the public. While this is the first proper franchise offering listed, it is so new that it could not have proved itself as a top franchise. For context, less than 3 years’ worth of data is available on this franchise.

Home Helpers

Home Helpers is a franchise opportunity that provides in-home care services for seniors, disabled adults, and anyone else who needs assistance with activities of daily living. The company was founded in 1997 and has since grown to become one of the largest in-home care franchise organizations in the United States. Home Helpers currently has over 500 franchisees operating in 38 states. This franchise has a Franchise For-Sale Rate of 17% which means that 17% of its franchises have changed hands in the last three years. This is a red flag as the industry median rate is only 5%.

Hommati Drones

Provides digital media services such as 3D interactive tours, drone aerial videos, virtual reality tours, agent green screen videos, agent biography videos, 4K 2D images, augmented reality services, video slideshows, virtual staging, as well as a door hanger service and sign and lockbox placement and a real estate web site and mobile app for agents to advertise their listings.

American Business Systems

Provides a business opportunity similar to ClaimTek Systems. “American Business Systems is the fastest way to start your medical billing business, guaranteed. With over 20 years of experience, ABS is the nation’s largest network of Certified Medical Revenue Managers. ABS is the largest company of its kind nationwide, providing training and support to independent licensees since 1994″, reads the description on Franchise Direct. Its website is much more professional and easier to access.

Out of the first ten offerings on Franchise Direct, only three were franchises and two of them have glaring red flags. Clearly, Franchise Direct does not market only franchises but also business opportunities that do not maintain the same protection under the Federal Trade Commission (FTC) Franchise Rule.

Conclusion

Franchise Direct is an unreliable source whether you are just starting your search for a franchise or switching businesses.

Vetted Biz is the leading platform for accessible and analytical data on franchises and businesses available in the U.S. At Vetted Biz, we bring transparency to potential franchisee owners as they navigate the process of buying a franchise as well as franchisors that are vetting potential franchisees. Our research team has reviewed over 5,500 franchises and knows the key facts and data that signal a successful franchise system. Data is collected from sources including but not limited to Franchise Disclosure Documents, industry reports, SBA loan data, and other business research. 

Vetted Biz converts analytical data and complex business material into clear, easy-to-understand information that helps individuals find the best business opportunities for their future entrepreneurial goals. If you are an aspiring business owner looking for a place to start, Vetted Biz can provide you with the analytics and resources to power your search and analysis for your future business.

The team behind Vetted Biz has advised hundreds of entrepreneurs in finding and analyzing franchises across the U.S. and now is offering key analysis and data directly on Vetted Biz.

franchise specialists

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