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.
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.

Cottage Inn Gourmet Pizza Expands Midwest and Offers New Franchise Opportunities

Famed Ann Arbor pizza brand, Cottage Inn Gourmet Pizza, a family brand founded in 1948, recently announced its plans to expand in to the Midwest and offer new franchising opportunities, as it enters a new phase of aggressive growth. By the end of this year, Cottage Inn Gourmet Pizza hopes to launch 10 new locations in Ohio, Illinois and Indiana. The group also has international ambitions, with plans to open up to 200 new shops in China within the next 15 years. The company currently operates over 50 establishments in Ohio, Florida and Michigan.

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.