Posts Tagged ‘ Questions To Ask Franchisor ’
You want to make an informed business decision when selecting a franchise. Your research will help you calculate the risk you will be taking with your investment capital, your time, and your potential to derive an income from another job or business. In addition, you want to also secure the value of your assets for the time in the future when you may wish to sell the business.
By now you will have had contact with one or more representatives from the franchisor. You may still have lots of questions to ask. To help you gain an adequate understanding of the business model and relationship you are about to enter, be sure you get complete and thorough answers to these questions:
- What is the competitive advantage that this franchisor has in this industry that I can capitalize on for my success?
- What is this franchisor’s unique position in the industry? How do they assist their franchisees with competing for market share?
- Can the franchisor provide industry trends data reports? How does the franchisor use these reports to plan their marketing and franchise growth strategies?
- How many franchisees were added in the past 12 months? How does franchising fit in the overall business growth strategy?
- Can the franchisor describe (in detail) what a day in the life of a successful franchisee looks like?
- Get some current and former franchisees on the phone and ask them these “validation” questions:
- How does the franchisor assist them in competing for market share?
- What is their analysis of the industry?
As part of due diligence process, be sure to review and monitor the businesses that would compete with your franchise opportunity. Gather franchise information from competing franchises in your industry or region.
About Joe Barbat
As a leader in the wireless retail industry, Joe Barbat founded Wireless Toyz in 1995 and grew the organization to a multi-location national franchise. Now Joe Barbat focuses on providing quality information and advice for franchise candidates that are interested in creating a better life through owning a franchise. Questions, thoughts, and comments about your franchise search experience are fielded by visiting the Ask Joe Barbat section of the website.Continue Reading »