Evan Carmichael Top Header about About About facebook Twitter YouTube Google+

Top Ten Questions To Ask When Exploring Franchises


Guest post by: Anne Barr
Become an Author

Free PDF Download
Transfers vs. New First Time Franchisees - By Anne Barr

Name: Email:


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

Home > Franchises > Anne Barr > Top Ten Questions To Ask When Exploring Franchises >

Free PDF Download
Transfers vs. New First Time Franchisees - By Anne Barr

Name: Email:

About the Author: Anne Barr

RSS for Anne's articles - Visit Anne's website
Anne Barr has over 32 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.
Click here to visit Anne's website.
Dashed Line

More from Anne Barr
What Do Franchisors Look For in Potential Franchisees
Franchise Trends for 2011
Going Green
NonTraditional Sites For Franchises
Top Ten Questions To Ask When Exploring Franchises

Related Forum Posts

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

Share this article. Fund someone's dream.

Share this post and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.
Share for a Cause
Featured Video


Expert author video by:
Stan Popovich, Fear Management



Worksheets
By: Evan Carmichael

Do you have what it takes to be an entrepreneur?

8 Powerful Steps to Finding Your Passion

Does your pitch suck?

Create a plan of attach to launch your new business.

8-Cover

Like this page? PLEASE +1 it! Evan Signature
Bottom Footer



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.