12 Questions You Must Ask When You Interview Existing Franchisees
So you've found a franchise you're excited about, and you're considering moving forward and becoming a franchisee. Great!
But if you've only spoken to the franchisor so far, you've only gotten one perspective. Even the most honest and forthcoming franchisor can't tell you what it's really like to be a franchisee. But luckily, you can talk to someone else who can: their existing franchisees.
Before you commit to any franchise, you should take the time to call a few of their current franchisees and get some candid answers to your questions. They've been where you are now, and they'll be able to tell you what they know now that they wish they knew when purchasing the business.
Be careful not to only speak to the most successful owners, or ones who have been coached to give the franchise a positive review. What you want is the full picture of what it's like to be a franchisee, including any potential downsides, so calling franchisees at random will give you the clearest picture of what you're getting into.
Here are some questions you should be sure to ask:
- Are you happy with your franchisor? How is your experience different from what you expected?
- How long did it take for you to realize a return on investment?
- Approximately how much are you earning? Is it what you expected?
- How many hours a week do you spend working on the business?
- Did the training your franchisor provided really prepare you to run this business?
- Were there any hidden fees or unexpected costs?
- Are there restrictions on the products you sell and use in your business? If so, were you told of those restrictions beforehand?
- What do you think of the marketing and advertising? Does the franchisor advertise as much as you were promised it would?
- What kind of support do you receive now? When you have a problem, is your franchisor responsive or do you feel like you’re on your own?
- What did it cost you to build and start the franchise?
- Did your franchisor accurately estimate the start-up and operating cash you needed?
- If you had it to do all over again, would you choose the same business and franchisor?
And of course, feel free to add your own questions! Now is a great time to ask anything you've been wondering about, from someone who knows the answer first hand.
Determining Your Priorities
At its core the decision to open a franchise isn’t a trivial decision. You are making a serious investment, but if you take all of the factors into account it can be an amazing one. But before you get there you need to sit down, analyze your needs, capabilities and limitations in relation to a franchise business. This could take a few days to consider or a few weeks or months. In either case, it is one of the most important steps in the franchising process, so don’t skip it.
Choosing a Service Franchise or a Product Franchise
Most of the franchises offering Product oriented goods have very stringent rules. Since their brand is associated with a tangible good they must guarantee the desired quality from the consumer’s expectation. Franchisees must purchase the goods from a designated supplier and must keep items in their inventory as suggested by the franchisor. This can be company regulated policies or simply to help the franchisor launch some of their new products.
The Best Automotive Franchise Opportunities in the USA
The automotive industry has long been an attractive category for aspiring franchise owners. There are nearly as many different types of automotive franchises as there are services and offerings for cars, such as maintenance, repairs, or car rentals. And regardless of the economy or gas prices,the number of automotive franchises is expected to grow due to rising car ownership in developing countries, new car sales, and maintenance and repair of older cars that continue to roam the world's expanding roadways.
