There are many inquiries to ask franchisees before you purchase a franchise enterprise. And doing so is a large a part of any critical analysis.
Correction. Asking questions of franchise homeowners is an important a part of franchise analysis
However what questions do you have to ask?
And what ought to the solutions you get provide help to reveal?
Certainly one of two issues.
Both…
A. You’re a franchise alternative you can achieve success proudly owning. Or…
b. You’re a franchise alternative that may bleed you dry.
On that uplifting observe, let’s dig in.
“Analysis signifies that you don’t know, however are prepared to search out out.”
– Charles F. Kettering
15 Questions To Ask Franchisees
I encourage you to print out these franchise inquiries to ask franchise homeowners, so that you’ll have them in entrance of you while you name franchisees.
Moreover, I’ve offered a number of confirmed franchise analysis suggestions I do know you’ll discover helpful.
So with out additional adieu, listed here are a number of the finest inquiries to ask franchisees earlier than shopping for a franchise:
1. What occurred that made you determine to purchase a franchise enterprise?
2. How did you discover this franchise alternative?
3. Why did you find yourself selecting this franchise?
4. How lengthy, from starting to finish, did it take so that you can do your analysis, and signal the franchise settlement?
5. How lengthy did it take so that you can open your corporation?
6. What are your favourite and least favourite elements of the enterprise?
7. Who’re your greatest opponents, and what do you do higher than them?
8. How lengthy did it take so that you can break-even, and is there one thing you possibly can have achieved to achieve break-even sooner?
9. Have your revenue expectations been met, and if not, why do you suppose that’s?
10. Is there cash to be made on this enterprise? How a lot?
11. How lengthy does it typically take to get assist from franchise headquarters? Is it good?
12. If in case you have a criticism, how do you go about making it, and the way does the franchisor reply?
13. Are you able to inform me about advertising and marketing, and the way effectively it really works?
14. Are you able to inform me one thing I might haven’t any method of understanding except I used to be already a franchisee
15. In case you had it to do over once more, would you purchase this franchise? Why or why not?
Up to date: 7 New Questions To Ask Franchisees Earlier than Shopping for A Franchise
Listed here are just a few extra inquiries to ask present franchise homeowners when shopping for a franchise.
These questions have the potential to disclose plenty of helpful info.
I’m speaking particularly about info you’ll must make a sure or no choice on shopping for the franchise you’re wanting into. However you have to ask them!
#1 – What number of franchisees did you speak with earlier than you acquire the franchise?
#2 – Is there a franchisee affiliation, or are there discussions occurring about forming one?
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#3 – Do you are feeling the executives at franchise headquarters are targeted in your profitability as a franchisee?
#4 – What can the franchisor do higher?
#5 – Do you publish posts about your corporation on social media, or does the franchisor do it for you?
#6 – Are you going to buy extra areas, and if that’s the case, how quickly? If not, why not?
#7 – Have you ever been listening to any rumors in regards to the firm getting acquired by a personal fairness group or by one other franchisor?
I hope you these questions are useful!
Bonus Franchise Analysis Ideas
Listed here are just a few analysis suggestions that may allow you to get the best info you may, within the shortest period of time. The following tips are targeted on franchisee cellphone calls; they’re solely a part of the analysis you’ll must do.
1. Have a printout of the questions you’re going to ask franchise homeowners in entrance of you earlier than you begin calling them. I do know this one sounds apparent, however as a result of you’ve got lots in your thoughts, chances are you’ll neglect to print your questions out.
2. Know who you’re going to name earlier than you begin the method. One technique to do it to circle the names and cellphone numbers of the franchisees you discover within the FDD.
3. As a lot as you’re tempted, don’t name franchisees who’ve companies in your space first!
As an alternative, name franchisees from different elements of the nation. That method, by the point you do speak to franchisees that reside in your space, you’ll sound like what you’re doing. You’ll sound extra assured.
Working example:
I promise you that the primary few calls you make to present franchisees are going to be a bit uneven. That’s since you’re new to this, and also you’re asking them some fairly private questions. However don’t fear; after 3-4 calls, you’ll have a really feel for how you can method the calls.
4. If one thing troubling comes up throughout considered one of your franchisee calls, contact the franchise improvement consultant (the salesperson) at franchise headquarters, and convey it up. See how she or he reacts, and take heed to what’s being mentioned. And convey up the difficulty you had been simply advised about with different franchisees. See what they must say.
5. When you’re completed researching franchises, and you’re feeling such as you’ve chosen one which is sensible for you, you have to rent a franchise lawyer. Watch this video to see why it’s a should!
Winding Issues Up
So there you’ve got it; the highest 15 inquiries to ask franchisees earlier than shopping for a franchise.
Use them, so you will get the solutions you want in regards to the franchises you’re wanting into.
Lastly, for extra extra franchise analysis suggestions, and a listing of dozens and dozens of extra inquiries to ask franchise homeowners, seize my analysis information. You’ll be taught one of the best strategies on how you can get your most vital questions answered from each franchisees and franchisors. And when to ask them.
(Wingstop picture courtesy of Leahdi, CC BY-SA 3.0
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