Identify the perfect franchise for you! Take our short quiz Take our free franchise quiz!
Identify the perfect franchise for you! Take our short quiz Take our free franchise quiz!
Identify the perfect franchise for you! Take our short quiz Take our free franchise quiz!

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.

  1. 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?
  2. 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?
  3. What will happen if you want to end your contract? Are there penalties involved, or are there circumstances under which this is acceptable?
  4. 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.
  5. How many years has your franchisor been in business, and how many other franchises do they have within their chain?
  6. 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?
  7. Have you had an accountant review all of the figures released by the franchisor, and have these numbers been independently verified?
  8. 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?
  9. How much money will be required to purchase a franchise, and keep it running until it turns a profit?
  10. 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.
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.

Franchise Disclosure Documents For Dummies – Part 1

To begin my new weekly column for FranchiseHelp.com I will be writing a series of articles covering some basics and need-to-know information for each of the twenty-three Items of the Franchise Disclosure Document (“FDD”). I will try to be as non-technical as possible, and will try to provide insight and information that is useful for both franchisors and prospective franchisees. Nine weeks from now, you may have a slightly better understanding of the core elements of the FDD.

Chick-fil-A Wants You to Eat Less Kale?

Several other big-name corporations have been in the news recently for raising similar issues. Nike recently sent a letter to someone selling “Just Jesu It” t-shirts. Best Buy sent a letter to Geek On. Hell’s Angels sent a letter to a designer in California.