Asking the Right Questions Before Beginning a Franchise
Asking the Right Questions Before Beginning a Franchise
How long have you been in the business?
A franchise business is all about transferring the franchisor’s accumulated business sense to the franchisee. So, how many years the franchisor has taken in perfecting the business model is vital when it comes to the question of success. Generally, a franchisor should start offering franchise business for sale only after it has established a market presence. So, checking out the time-period your franchisor has taken in creating a market for the product/service is essential.
What is your vision and mission statement?
A franchisor is supposed to be the leader of the franchise system. And every leader should have a clear picture of where he is going. When you go for starting a franchise, it’s a long term commitment from your part. Hence, knowing that the franchisor has envisioned a bright future along with a perfect system for you is very necessary. Similarly, every business should have a core value, which cannot change under any circumstance. Becoming aware of the mission statement of your franchisor will help you to judge whether its values and business practice is finding resonance with your principles. If they clash, neither you nor your franchisor will benefit from this sort of association.
How much support and training are you giving?
People buy a franchise because they don’t want to be in the business all by themselves. The extensive support and training provided by the franchisor is the reason why franchise business has lower failure rate than stand-alone businesses. Hence, be very careful when you are inquiring about the support and training programs that you will get from the franchisor. Make sure that you get effective property lease and negotiation assistance when you are starting a franchise. The initial training will help you to learn everything about the business model of the franchisor. Also, ensure that the course materials of your initial training program are comprehensive enough, so that you can understand and implement them properly in your location.
Are you giving financial assistance?
Many top franchises in the business offer financial assistance to the people wishing to buy a franchise from them. If you franchisor is offering help in this matter, then it will save you a lot of time and hassles. Some franchisors that are registered as small business franchises get preferential treatment, if you apply SBA loan for buying them. Moreover, some franchises are pre-approved for SBA loans, making the loan process easier while some have tie-ups with lenders and financial institutes. Then there are franchisors that help in developing a killer business plan, which also helps you to get loans easily. So, don’t forget to ask which of these supports your franchisor is providing you with.
Asking the Right Questions Before Beginning a Franchise - To learn more about this author, visit Michael Hemenway's Website.
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Starting a franchise is the decision of a lifetime. So, it’s very imperative that you take it after long consideration and thorough investigation. There are many franchise opportunities in the market; but there will be only one that will be perfect for you. Hence, be very critical during the due diligence process and ask the following questions to the franchise concepts whose franchise business for sale offers have interested you the most.
How long have you been in the business?
A franchise business is all about transferring the franchisor’s accumulated business sense to the franchisee. So, how many years the franchisor has taken in perfecting the business model is vital when it comes to the question of success. Generally, a franchisor should start offering franchise business for sale only after it has established a market presence. So, checking out the time-period your franchisor has taken in creating a market for the product/service is essential.
What is your vision and mission statement?
A franchisor is supposed to be the leader of the franchise system. And every leader should have a clear picture of where he is going. When you go for starting a franchise, it’s a long term commitment from your part. Hence, knowing that the franchisor has envisioned a bright future along with a perfect system for you is very necessary. Similarly, every business should have a core value, which cannot change under any circumstance. Becoming aware of the mission statement of your franchisor will help you to judge whether its values and business practice is finding resonance with your principles. If they clash, neither you nor your franchisor will benefit from this sort of association.
How much support and training are you giving?
People buy a franchise because they don’t want to be in the business all by themselves. The extensive support and training provided by the franchisor is the reason why franchise business has lower failure rate than stand-alone businesses. Hence, be very careful when you are inquiring about the support and training programs that you will get from the franchisor. Make sure that you get effective property lease and negotiation assistance when you are starting a franchise. The initial training will help you to learn everything about the business model of the franchisor. Also, ensure that the course materials of your initial training program are comprehensive enough, so that you can understand and implement them properly in your location.
Are you giving financial assistance?
Many top franchises in the business offer financial assistance to the people wishing to buy a franchise from them. If you franchisor is offering help in this matter, then it will save you a lot of time and hassles. Some franchisors that are registered as small business franchises get preferential treatment, if you apply SBA loan for buying them. Moreover, some franchises are pre-approved for SBA loans, making the loan process easier while some have tie-ups with lenders and financial institutes. Then there are franchisors that help in developing a killer business plan, which also helps you to get loans easily. So, don’t forget to ask which of these supports your franchisor is providing you with.
Asking the Right Questions Before Beginning a Franchise - To learn more about this author, visit Michael Hemenway's Website.
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John PowerJohn Power, founder of Biltmore Franchise Consulting, has extensive experience developing and marketing franchises and business opportunities. He has been in and around franchising for over twenty years. From 1980 through 1990 he conceptualized, organized, and developed the American Video Association. He grew AVA to 2,000 national members, before selling the company it 1990. It was later merged into another home video marketing company. From 2000 to 2005 he worked as a contract marketing and human resources consultant to several local and national companies. In 2005 Mr. Power began working as a franchise development consultant on a full-time basis. Since that time he has helped more than three dozen companies initiate and develop their franchising program. He notes that there are many companies interested in developing a franchise program, and who need his specialized assistance. Mr. Power is a “hands-on” franchise consultant. He said, “I am the ‘nuts and bolts’ person who tends to the details for my clients.” Mr. Power holds a B.S. degree with a major in Marketing. See: www.biltmorefranchise.com You may contact Mr. Power at: jpower@biltmorefranchise.co - Visit John Power's Website |
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Anne BarrAnne Barr has over 26 years experience in sales and marketing, six years as a franchisee. She has assisted over 367 business owners and purchasers to achieve their goals in career change, transition and exit strategy. She holds the designation of Certified Franchise Executive from the International Franchise Association, Certified Business Intermediary from the International Business Brokers Association and Board Certified Broker from the Texas Association of Business Brokers. Anne is active in professional organizations, networking groups and volunteers for non-profit entities. As owner/operator of four successful businesses, Anne has proven people skills and enjoys helping clients find the right "fit" in business ownership. Visit www.FranchiseOpportunitySpecialist.com for more information about me and my company. - Visit Anne Barr's Website |
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John BrennanJohn Brennan Ed.D. Dr. Brennan is President of Interpersonal Development, LLC, a training and development firm. Interpersonal Development has provided sales training and coaching to more than 3,000 sales reps from over 100 companies. A native of Australia, Dr. Brennan received his doctorate from the University of Rochester. His dissertation researched the effectiveness of Behavioral Modeling Technology in training people in interpersonal skills. While he has spent most of his career designing or delivering training, he was also a Vice-President of Sales of a training and development franchise with operations in 25 markets. Dr. Brennan has designed and delivered sales training in North America, Asia, Europe, Australia and the Middle East. He has been a guest speaker at numerous national and regional professional conferences. When Microsoft wanted Best Practices articles on sales for their web site, they called Dr. Brennan. The results are at http://office.microsoft.com/en-us/FX011387391033.aspx His firm’s clients have included Volvo, The Prudential, Merrill Lynch, Eastman Kodak, Gannett, Equifax Europe, the Economist Group and countless small businesses. - Visit John Brennan's Website |
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Jay Kubassek(Jay's Full Bio: EvanCarmichael.com/jaykubassek) In five years, Canadian-born entrepreneur Jay Kubassek went from selling mufflers at a Midas franchise to revolutionizing Internet marketing with the 2004 launch of CarbonCopyPRO, a online marketing education company, now worth over $20 million with customers in over 160 countries.
As an independent film producer, his upstart film fund Aliquot Films is currently producing a films with Spike Lee and Abel Fererra (starring Ethan Hawke and Dennis Hopper.)
Jay's entrepreneurial spirit is irrepressible. He’s the owner of five companies, a professional speaker and trainer, international real estate developer/investor, extreme sport enthusiast and emerging philanthropist. Jay resides in NYC with his wife Jamie, son Milo and dog Cooper. Visit Jay's official website: www.JayKubassek.com - Visit Jay Kubassek's Website |
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