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.
5 Hot Franchises for 2015

Looking ahead to 2015, here are 5 different franchises that we think are going to growing at an incredibly rapid rate:

Follow the System

While these franchisees might think they are helping the brand, in fact it’s just the opposite.

The Ideal Franchisee - The Franchisee Point of View

Possessing an entrepreneurial mindset is a plus but one should also have the employee mindset as well. This lies in the fact that even though the franchisee must have the steely determination and drive to launch a business, they must be willing to be restrained and follow the directions of the franchisor. The level of control for a franchisee is noticeably less than of that of being an owner of your own independent business. However the level of risk presented to a franchisee is less than that of an independent business owner. Therefore this type of business is preferable for those looking for less risk. If we were to prepare a checklist of the traits, which were to be present within the ideal franchisee, it would appear something as: