Business Franchise (Summer 23)
In Business Franchise (Summer 23) we discuss how to find the right franchise opportunity for you.
Our managing consultant Phil Mowat explains the importance of doing your research in order to make the right decision when buying a franchise – due diligence is vital. Read on to discover what questions you should be asking.
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Alternative questions to ask a franchisor
Looking for some trickier questions to ask a franchisor? Here are some alternative suggestions:
Business Operations and Support
- What sets your franchise apart from competitors in the same industry?
- What ongoing training opportunities are available for franchisees?
- How do you handle underperforming franchise locations?
Financial and Investment Considerations
- What kind of initial and ongoing financial reporting is required from franchisees?
- What financing options are available, and do you have relationships with lenders?
- How are marketing and advertising contributions allocated and used?
Market and Competition
- Can you describe a typical demographic profile for a successful franchise location?
- What market research do you provide to new franchisees?
- How do you stay ahead of industry trends and adapt to market changes?
Legal and Compliance
- What are the key legal obligations of a franchisee beyond the franchise agreement?
- How is the franchise agreement enforced, and what are the consequences of non-compliance?
Franchisee Relationships
- How do you foster a sense of community among franchisees?
- What forums or platforms are available for franchisees to share best practices and feedback?
- What is the average tenure of your franchisees, and why do they choose to stay or leave?
Long-term Vision and Growth
- What are your expansion plans for the next five to ten years?
- How do you plan to evolve the brand and its offerings in the future?
- What opportunities exist for franchisees to influence the direction of the franchise system?
Looking for some more advice? Have a look at our Buy a Franchise section.