There are many inquiries to ask franchisees before you purchase a franchise enterprise. And doing so is a big a part of any severe analysis.
Correction. Asking questions of franchise house owners is a very powerful a part of franchise analysis
However what questions must you ask?
And what ought to the solutions you get enable you to reveal?
One in every of two issues.
A. You’re a franchise alternative you could achieve success proudly owning. Or…
b. You’re a franchise alternative that may bleed you dry.
On that uplifting word, let’s dig in.
“Analysis signifies that you don’t know, however are keen to search out out.”
– Charles F. Kettering
15 Questions To Ask Franchisees
I encourage you to print out these franchise questions, so that you’ll have them in entrance of you whenever you name franchisees.
Moreover, I’ve offered a number of confirmed franchise analysis ideas I do know you’ll discover helpful.
So with out additional adieu, listed here are a few 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 small business?
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 may have finished to succeed in break-even quicker?
9. Have your earnings expectations been met, and if not, why do you assume 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 grievance, how do you go about making it, and the way does the franchisor reply?
13. Are you able to inform me about advertising, and the way nicely it really works?
14. Are you able to inform me one thing I might haven’t any approach of realizing until I used to be already a franchisee
15. When 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 below are a couple of extra inquiries to ask franchise house owners earlier than shopping for a franchise.
These targeted questions have the potential to disclose a number of helpful data.
I’m speaking particularly about data you’ll have to make a sure or no choice on shopping for the franchise you’re trying into. However you should ask them!
#1 – What number of franchisees did you speak with earlier than you got the franchise?
#2 – Is there a franchisee affiliation, or are there discussions occurring about forming one?
#3 – Do you’re feeling the executives at franchise headquarters are targeted in your profitability as a franchisee?
If You’d Like To Tremendously Enhance Your Odds Of Selecting The Proper Franchise To Personal… Seize This!
#4 – What can the franchisor do higher?
#5 – Do you publish posts about your small business on social media, or does the franchisor do it for you?
#6 – Are you going to buy extra places, and if that’s the case, how quickly? If not, why not?
#7 – Have you ever been listening to any rumors concerning the firm getting acquired by a personal fairness group or by one other franchisor?
I hope you these questions are useful!
Bonus Franchise Analysis Suggestions
Listed below are a couple of analysis ideas that may allow you to get the best data you possibly can, within the shortest period of time. The following pointers are targeted on franchisee cellphone calls; they’re solely a part of the analysis you’ll have to do.
1. Have a printout of the questions you’re going to ask franchise house owners in entrance of you earlier than you begin calling them. I do know this one sounds apparent, however as a result of you will have loads in your thoughts, you might overlook to print your questions out.
2. Know who you’re going to name earlier than you begin the method. One approach 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 a substitute, name franchisees from different elements of the nation. That approach, 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.
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 one can strategy the calls.
4. If one thing troubling comes up throughout certainly 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 hearken to what’s being mentioned. And convey up the difficulty you had been simply advised about with different franchisees. See what they need to say.
5. When you’re completed researching franchises, and you are feeling such as you’ve chosen one which is smart for you, you should rent a franchise lawyer. Watch this video to see why it’s a should!
Winding Issues Up
So there you will have it; the highest 15 inquiries to ask franchisees earlier than shopping for a franchise.
Use them, so you may get the solutions you want concerning the franchises you’re trying into.
Lastly, for extra extra franchise analysis ideas, and an inventory of dozens and dozens of further inquiries to ask franchise house owners, seize my analysis information. You’ll be taught the most effective strategies on how one can get your most necessary questions answered from each franchisees and franchisors. And when to ask them.
(Wingstop picture courtesy of Leahdi, CC BY-SA 3.0 , by way of Wikimedia Commons)
Be aware: Once you purchase by way of hyperlinks on our web site, we might earn an affiliate fee.