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?