Corporate Units

Size is just one of the priorities you may have. Another crucial factor for some franchisees is whether the system operates company-owned stores. The conventional wisdom is that being in the thick of daily operations makes the franchisor more aware of the franchisee’s needs and can spawn ideas for improvements. In more than just a few cases, however, franchisees have been hurt by corporate stores that have situated themselves too close to the franchisee’s location and, in effect, taken away from the franchisee’s business.

Questions to answer:

When you first meet with the franchisor, ask what its policy is on company-owned stores. If company units are operated, find out if distance restrictions apply. What is the closest distance allowed to franchisee units? Are the distances strictly adhered to? Is the policy written into the franchise contract? Does the franchisor have any immediate plans to open stores in your selected area?

You should also give thought to selecting between a product or service franchise...
Click here to read more

Click Here to contact us and find out how we can help you.