---

Guest post by: Anne Barr Become an Author

Tweet

---

---

When considering any franchise opportunity, it behooves the prospective franchisee to ask lots of questions to educate themselves on all the pros and cons of the opportunity.

During the research and due diligence phase of investigation, there are numerous questions to ask both the Franchisor and the existing franchisees. After all, what better source of information than from those individuals currently operating that particular franchise model.

Below are headliners from each list:

Questions to Ask the Franchisor:
1.) What is the competitive advantage of your product or service?
2.) Who are your competitors and how does your business compare?
3.) What kind of support do you provide to franchisees?
4.) How will franchisees describe their relationship with the franchisor?
5.) How many of your franchisees have gone out of business or left the system in the last 2 years and why?

Questions to Ask the Franchisees:
1.) How long have you been a franchisee? So far, are you happy and would you do it again?
2.) How would you rate your on-going support? If you need assistance, do you get it easily?
3.) How do you rate the marketing, advertising, and promotional programs?
4.) How difficult is it to find, train and retain employees?
5.) What is the main function of the owner of the business? Could you please describe a typical day?

Obviously, there are many more questions on each list. Another very important area is the “financial performance representations” (formerly called “earnings claims”). The Federal Trade Commission “allows” franchisors to make these representations, but are not mandated to do so. The FTC also states in preambles to Item 19 of the Franchise Disclosure Document that “prospects should not rely on unauthorized representations”.

Related Articles

  Steps to a Successful Franchise Experience
  Franchising FAQs
  Low Cost Franchises Offer Way to Own Your Own Business
  Reasons to Consider Franchising
  Franchise Clique, Industry Leader, is Signing New Business Every Day
  SME's - why is franchising not more popular in Africa
  New Franchise Direct study finds opportunities brewing in the coffee franchise sector
  Evaluating the franchisor
  Franchise Marketing Systems Client Growth
  Franchising in Indonesia
  Overcome the Catch-22’s of Job Hunting by Becoming Your Own Boss
  Low Investment Franchises On The Rise
  What about a Franchise
  Australian Franchise Directory Challenges Decrease in Franchise Enquiries
  Which Coffee Franchise is Best for You?
  Business Niche: Where do you place?
  The FTC on Earnings Claims Statements
  Top 100 Global Franchises for 2009
  Restaurant Franchising
  Hotel Franchising

Related Forum Posts

franchisebrief.com good clean design
Re: Franchise Support. What is it to you?
Re: Quote of the Day - "Don't be embarrassed about asking "stupi
Clothing Franchises
Re: Marketing ideas?

Share this article. Fund someone's dream.

Newsletter

Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!

Name:
Email:

Popular Articles

Do Paid Surveys Work?

Business Coaching How to Plan

Declaring an Authentic Market Niche

Suggestions

Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.