10 Questions to Ask Yourself and Your Future Franchisor
When considering prospective franchise opportunities, it’s important to know the right questions to ask to get all of the details necessary to make an informed decision about your purchase. Researching the background of your franchisor, and determining the support and assistance they will be able to offer you as you get started are just two key elements that you will want to consider before you sign any contracts.
- Have you and your lawyer looked over all of the
franchise documents, and feel that the terms and conditions
are fair and equitable? Do you understand all of the terms and conditions set
out in the contract? Do you feel comfortable signing the contract?
- Will you have exclusive territory rights for the duration of your
contract, or is there a risk that your franchisor will allow other businesses
to start up within your chosen area?
- What will happen if you want to end your contract? Are there penalties
involved, or are there circumstances under which this is acceptable?
- Are there any requirements within your contract that would encourage you
to engage in illegal or questionable practices? This is a huge red flag that
you shouldn’t be involved with the business.
- How many years has your franchisor been in business, and how many other
franchises do they have within their chain?
- What kind of support will you receive as a new franchisor, and then as an
established franchise? Is there training, upgrading, and emergency support
available? Are there a series of scheduled visits throughout the year?
- Have you had an accountant review all of the figures released by the
franchisor, and have these numbers been independently verified?
- What kind of reputation does the franchise have within the business
community? Also, can you speak with other franchisees to see how they feel
about working with the company?
- How much money will be required to purchase a franchise, and keep it
running until it turns a profit?
- Has the franchisor investigated franchisees thoroughly enough? You will
want to ensure that they are doing their part to hire qualified people on
their teams to maintain brand standards before buying a franchise from the
company.
Unique Advertising Strategies for your Business
Starting a new business comes with a deluge of challenges–among them, developing and implementing creative advertising strategies and marketing techniques that differentiate you from your competition. In the battlefield of brand recognition, it’s crucial to stand out, finding unique and innovative ways to promote your business.
What Would You Do with $25,000?
Have you ever had one of those days when you were just kind of fantasizing about what you would do if you had a crazy amount of money? I had one of those a couple of weeks back when I was looking for a new apartment. I decided to go onto an NYC realty site and take a look at what paying an absurd amount of rent gets you in the city. I was looking and came across one for $25,000 a month (and that’s nowhere near the top end) and just had to laugh. Of all the things you could do with $25,000 - paying one month’s rent on an apartment seems pretty nuts to me. But that got me thinking, what can you do with $25,000 - from rational to fun to downright wacky.
The Necessity to Revamp Franchise Operations and Systems
But, once the original operating system is established, it must be refined and tweaked as changes take place in its industry and within the company. An ongoing challenge for every business, not only franchise companies, is how to improve their operating systems in order to better manage results.
