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| Questions to Ask the Franchisor before Purchasing a Franchise It's all about asking the right questions Author: Franchise Finder Team |
| Make sure to ask the franchisor the right questions before actually signing an agreement and paying up. This could prevent a lot of headaches in the future so do your research and get as much info on the franchise as possible. |
| 1. How long has the franchise been going? |
| 2. Does it have a good reputation? |
| 3. Is there a specific target market? |
| 4. Does the franchise have long-term market potential ie. is it based on a fad or a sound concept? |
| 5. Do I need experience to run this type of franchise? |
| 6. Is it well branded? |
| 7. Does the franchise have a good marketing strategy? |
| 8. Does the franchise have an Operations Manual for franchisees? |
| 9. What degree of autonomy does the franchisor allow the franchisee in terms of decision-making? |
| 10. Does the franchisor consult the franchisees with regards to “big” decisions? |
| 11. What are the estimated profit margins for this type of franchise? |
| 12. Is training conducted before opening the franchise? How long is the training period? |
| 13. Is training ongoing? And if so, how often? |
| 14. What level of support is available on start-up and in the months following the start-up? |
| 15. Are there any extra administrative activities that need to be carried out once the franchise is up and running, such as monthly progress reports? |
| 16. What exactly is included in the start-up costs? |
| 17. What are the estimated ongoing costs? |
| 18. Are there royalty fees? If so, how much and how does this work? |
| 19. What are the advantages of this type of franchise? |
| 20. What are the disadvantages of this type of franchise? |