Franchise Opportunity What Questions Should You Ask The Franchisor

Franchise Opportunity What Questions Should You Ask The Franchisor



With all franchise opportunities there are a​ few questions that all potential franchisees should ask of​ the franchisor. Bear in​ mind that this relationship could last many years and your business potential and your future happiness rests on the answer received. Money whilst important in​ the decision making process is​ by no means the only important consideration in​ business.

First and foremost it​ is​ important to​ ask about the franchisors background. Their experience in​ business and their knowledge of​ the field that you are about to​ enter in​ should be comprehensive. Not only will this give you a​ chance to​ inquire about their knowledge but will also help you understand the people behind the business opportunity that you are about to​ enter.

How does the franchisor evaluate new franchisees? if​ this has not been as​ well developed as​ it​ should be then surely it​ questions the value of​ the franchise as​ well. All franchisors should have a​ clear understanding of​ the types of​ people they are searching for and clear guidelines as​ to​ how evaluate and score them. Bear in​ mind that a​ chain is​ as​ strong as​ its weakest link.

How well do they communicate with you? What methods do they use do communicate? Are they in​ touch with the latest technology? Technology is​ changing rapidly and in​ the future only the business men with their fingers on the pulse will survive.

How fast do they respond to​ requests for further information? if​ the franchisor can not be bothered with answering your questions before you they have your money how will they react once the monies have changed hands? When you find a​ franchise where the lines of​ communication are not only open but they are also professionally conducted then you can almost be sure that you are backing a​ winning team.

How many franchises have they sold and how well are the other franchisees faring? Are the franchisees generally happy with their business? is​ it​ what they expected? The moral of​ each part of​ the network will be a​ major factor in​ the growth potential of​ the group as​ a​ whole. Getting a​ grip on the profitability of​ their systems and understanding your chances of​ succeeding with their business ideas are very useful bits of​ information to​ have.

If possible get a​ full list of​ their franchisees names and contact details so that you can ascertain for yourself if​ the facts and figures quoted are reliable and trustworthy. Speaking to​ other franchisees will also help you to​ discover the pros and cons of​ the franchise business.

Finally it​ is​ important that you see eye to​ eye both with the franchisors and their long term plans for the business. Knowing what they hope to​ achieve and how they plan to​ do it​ will affect you and your business plans for many years. Are they receptive to​ ideas from other franchisees? Do they have a​ system of​ logging all the ideas received from their franchisees? Most of​ the best ideas invariably come from the people who are at​ the front end and dealing directly with the consumer.

Once you can get a​ feel for their long term plans and possibly approve of​ their way of​ thinking then you stand a​ better chance of​ not only living within their requirements and systems but also growing within them.

If you are ready to​ buy into the dream that the franchisor is​ selling then you have to​ be sure that not only the systems are in​ place to​ handle your growth but also that this strategic partnership will also develop further due to​ common ideas shared.




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