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.
Franchise Disclosure Document for Dummies – Part 4
One key aspect of Item 12 is establishing how franchisees’ territories will be defined. This may be by zip code, population, population with certain demographics, or geographic or political markers (i.e. streets or county lines). For franchises with population-based territories, a franchisee in a busy downtown urban area may have a territory of only a few blocks, while a rural franchisee’s territory could reach for miles.
The American Dream is NOT Out of Reach!
In the definition of the American Dream by James Truslow Adams in 1931, "life should be better and richer and fuller for everyone, with opportunity for each according to ability or achievement" regardless of social class or circumstances of birth.
Was Aristotle The First Great Salesperson?
Aristotle said that all persuasive arguments have 3 common elements, and he gave these elements some great names (which suspiciously sound like the names of the Three Musketeers):
