When investing in a franchise, a franchise broker or franchise consultant can save you time and money. They help you focus your interests and steer you toward franchises that are a strong match with your qualifications, resources, and dreams. They also prepare you to meet the franchisor. It is like interviewing for a job where the ultimate hiring manager is the franchisor.
The franchisor will ask you questions about your background and experience within the industry. They may also ask about your goals, finance strategy, and an exit plan should you need one. At FranSave, we know that finding the right questions to ask isn’t always straightforward. We’ve compiled a list of the most important ones to ask a franchisor and franchisee.
Read the company’s Franchise Disclosure Agreement (FDD) before attending the interview, so you are thoroughly prepared. You’ll have a chance to ask these questions at the end of your interview with the franchisor.
1. What’s the ROI?
When you make a significant investment, it’s crucial to know when you will see a return on your spending. It does take research to find that information, but the franchisor should give you some indication.
2. Will you help me find a suitable location?
Most franchisors have a good idea of what locations are available for a new franchise. They might be able to help you find the best spot for you and even organize the lease agreement.
3. What’s the investment cost?
You must have a financial plan to get an interview, but it’s always a good idea to double-check the investment costs involved. You want to make sure you know what you’re spending.
4. What training programs do you have?
Find out what support is offered, everything from training to continued marketing support once you’re up and running.
5. What are the fees?
You will pay fees for using the franchise company’s concepts, such as royalty fees and marketing funds. You’ll pay them for the duration of your contract.
6. Is there any extra financial assistance available?
Some franchisors offer financial assistance, while others will simply point you in the right direction. They might connect you with the U.S. Small Business Administration (SBA) to help you meet your financial goals.
7. How do you resolve disagreements?
Understanding the methods for handling conflict with the franchise is crucial for maintaining a solid relationship.
8. What makes me qualify?
Find out if you qualify as soon as you can. You’re not only investing money into opening a franchise you’re also putting in your time.
9. Have units failed and why?
Ask about how some units failed to help you avoid those same mistakes.
Visit successful franchisees to see what they do to make it work for them. Here are a few questions you could ask them:
If you’re interested in owning a franchise, then get in touch with us at FranSave. We are ready to help you make your franchise dreams come true. Call us on 844-476-7776 or send us an email at firstname.lastname@example.org.
This information is not intended as an offer to sell, or the solicitation of an offer to buy, a franchise. It is for information purposes only. Currently, the following states regulate the offer and sale of franchises: California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, and Wisconsin. If you are a resident of one of these states, we will not offer you a franchise unless and until we have complied with applicable pre-sale registration and disclosure requirements in your jurisdiction. Franchise offerings are made by Franchise Disclosure Document only.
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