Franchise owner be? 18 key questions to ask existing franchisees

Okay, you've been investigating a franchise opportunity that is both anxious and excited at the prospect of becoming an entrepreneur. Your consultant has discussed the franchising business in depth with you, including your role as a franchisee, the financial requirements, skill set needed, and I was introduced to the franchisor. You have received a copy of the UFOC, who have carefully studied with a consultant. Your family is behind you 100%. So far, everything looks great! What is next?

A crucial next step in the process of selecting the right franchise is to call some existing franchisees. The franchisor will provide you with a list of openly affiliates, and should be a different list, which means, for example, that the list will consist of 5 of the top producers of franchise sales, 5 medium producers and producers of the bottom 5. Keep in mind that there are many factors and variables for the answers you receive. For example, if a franchisee is currently the lower end in terms of sales for the franchise, it could well be that way because the franchisee their position just opened a month ago.

This list is extremely valuable to you, the prospective franchisee, as you are able to solicit answers to key questions from affiliates who are currently conducting their business franchise you are considering. Usually, you will receive more "rough", honest, un-edited feedback from affiliates, which is valuable to help in your decision making process.

That said, lets review some key issues that a potential franchisee should ask a franchisee outlet.

1. How long have you owned your franchise?

2. Your franchise profitable?

3. How long did it take to reach your cash flow break even?

4. Were opening costs in line with original projections?

5. What is your background before buying your franchise?

6. Are you satisfied with the support of the franchisor?

7. Are you satisfied with the product or service?

8. It 's clear the manual of operations, up-to-date and adequate?

9. Are you satisfied with the help of marketing?

10. It was the initial training and ongoing support sufficient?

11. Is the franchisor fair and friendly to work with?

12. The franchisor listen and help you with your concerns?

13. Have franchisees had disputes with the franchisor?

14. If so, what was their nature? Were resolved fairly?

15. Do you know of any disputes with competitors?

16. Who are your major competitors?

17. What is the biggest competitive advantage the company?

18. What is the biggest competitive disadvantage of the company?

Satisfactory answers to the previous set of questions may well put you on the franchise with a company that is not only in line with your values, but will also allow you to achieve the lifestyle you have dreamed for you and your family.

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