Questions To Ask The Franchisor To Find The Right Franchise Opportunity

Date: JAN 18th, 2016

Topic: Franchise News And Advice

Here are some helpful tips to consider when doing homework on the franchise for sale that interests you.

Each franchise opportunity, designed by the franchisor, will have a list of different services and products that they offer to their franchisees.

It is a good place to start by personally researching the products and services provided.  Ask questions like:
  1. How often there are updates of new products or services?  
  2. Are they looking to expand the range?  
  3. Where the supply comes from and do they always carry plenty of stock?  
  4. How much stock do you need on hand to buffer the lag in supply times?  
  5. Is there an influence on demand and supply, i.e. seasonal, annual events and the like?  
  6. If new products or services that compliment what you offer become available are they open to including these?  
  7. Have the franchisors embraced technology and have a fully automated service where this is possible?
  8. What is the marketing strategy?  
  9. Are they focusing on generating strong brand recognition?  
  10. Is the advertising sporadic, strategically timed, or following seasons or events, etc?
Other current franchisees are a perfect source of feedback about the franchisor and the franchise opportunity that is for sale.

Finding out points like:
  1. Does the franchisor encourage the sharing of information between the franchisee network?  Learning from each others successes and failures is a key bonus of investing in a franchise opportunity.  
  2. Is this information easily accessible?  
  3. Are they sending out helpful tips and newsletters throughout the year to promote your performance as a franchisee.  
  4. Can you benchmark your business with other franchisees in the same system. This can be helpful as a quick and very general personal gauge on your franchises performance. 
Being a member in a group branding effort is quite important.  You will need to be clear on the expectations of the brand to know that this is how you would like to present your business.  And that you can enhance and grow your own thriving franchise under this 'umbrella' brand. 

Some other handy points to find out are:
  1. Is the franchisor allowing for growth in your area/region?  That is, can you grow so that you create more franchise opportunities through growing demand, and will you benefit from this.  
  2. Is the franchisor working with a consultant who is very familiar and up to date with the franchising code of conduct?  
  3. Is the franchisor easily contactable to offer support?
  4. Last but not least, does the franchisor appear to be a good leader of their network?
If you have a family member, friend, or colleague involved in a franchise, have a chat to them and find out what they are happy with in their system and what works really well for them.  They could have other points to look out for and questions to ask.

When you have found the franchise opportunity that is ideal for you, and a franchisor that inspires, motivates, and supports you, the sky is the limit!

(We have not included the financial analysis required in this article)