What Questions Must Be Asked To The Franchisors While Evaluating A Particular Franchise?

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In this article we will be talking about what questions should you ask the franchisors while evaluating a particular franchise so that you make the best decision for yourself and your upcoming business.

Overall Questions to ask the Franchisor:

  • Where will your franchise be located? 
  • What is the benefit rate of existing franchises?  
  • What system is used to preserve franchisees from unsuccessfully performing franchises?  
  • Is there a franchise report council?  
  • Who controls the trademarks, service marks, etc., and are they federally enrolled?  
  • Are there any conflicts pending or cautioned against the trademark?   
  • Does this organization compete with the franchisees in the marketplace?  
  • Will the franchisor finance any of the prices?   


Questions that you must ask about expenses:

  • What is the entire expenditure needed to own a franchise?  
  • What are the continued financial prices, the basis for calculation, payment method, and payment frequency?
  • Must the franchisee purchase goods or services from the Franchisor?
  • Does the Franchisor earn interest on investments?  
  • How much does the Franchisor earn? 
  • How are the goods classified?  
  • How long does it take for the orders to be filled?  


Questions that must ask about Consumer Research and Marketing:

  • What type of customer research has the company conducted?   
  • What were the results?  
  • Has the Franchisor conducted any market studies on the territory to ensure that it can support a franchise?  
  • What are the demographics needed to sustain a franchise?  
  • What are the traffic calculations required to maintain the particular franchise?  


Questions that you must ask about Training: 

  • What are the location, span, and varying prices of an initial training?  
  • Who should attend the Training, and if yes, what will be the procedure? 
  • What is the price of additional staff attending Training? 
  • Who conducts the Training, and what are their backgrounds?  
  • Who pays for transport, room, and living charges?  
  • Does the Franchisor render training materials for instructing new staff in addition to the operations handbooks?  


Questions about Products and Services:

  • Are there any new products or services under state for addition to the franchise? 
  • What is the estimated additional price for adding the new products or services? 
  • Are there any limitations on the disposal or sale of the merchandise?  
  • Is there a guarantee or warranty plan? 
  • How is it determined, and what is the price?  


Questions about Operations:

  • What are the roles and responsibilities of the field staff? 
  • How many locations does each franchise consultant work in?  
  • What is the background of the franchise consultant I will be working with? 
  • Can I meet that person before purchasing the franchise?  
  • How often does the field staff visit a franchisee’s location?  
  • What is the additional price of field services if the franchisee requires it? 
  • Exactly what kind of assistance is given? 
  • What kind of supervision or quality control is there? 
  • What, if any, is the charge for assistance?  
  • What kind of business management systems is provided to boost sales and profits?  

Questions about Advertising and Marketing:

  • What type of customer advertising does the organization endorsed?  
  • How do the franchisees get their sales leads or buyers? 
  • What are the Franchisor’s national/regional promotion program and funds? 
  • What are the original advertising/marketing mediums? 
  • What is the grand opening advertising presentation and price?  
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