subject: Questions To Ask When Assessing Franchise Opportunities [print this page] Franchises come in all shapes and sizes and offer all kinds of business opportunities. You can choose from hundreds of service orientated franchise businesses, which cover just about every niche market you could think of, and there are new ones appearing every day.
Picking out the right one is critical to the franchisee's overall success. Select one which is struggling, or has grown too fast to sustain itself, and problems follow. On the other hand, pick one which is on the rise, that has got proven systems and programs in place, and you can easily become a success.
This step, far more than any others, is the sole responsibility of the potential franchisee to get right. The advice of a franchise consultant can be sought, but their objectivity can sometimes be questionable. Regardless of the particular type of franchise being considered though, they can be assessed with the answers to these questions:
- What is the vision of the company?
- What is the age of the company?
- For what time did it work as an independent business prior to offering itself as a franchise business?
- What is the brand position of the company?
- What kind of franchises do they offer?
- How many franchisees are there in the system?
- How many multi-unit franchisees are in the system?
- Have any franchisees left the company? If so, why?
- What is the franchise fee and what does it cover?
- Is there a royalty fee? If so, how much is it?
- What is the duration of the franchise agreement?
- Who is in charge of the company? What are their qualifications?
- What training does the franchisor provide? What is the on-going support?
- Which regions are they operating in?
- Where are raw materials sourced? Can franchisees choose their own suppliers?
- Does the franchisor offer financial assistance?
- Is real estate support provided by the franchisor?
- What number of employees are required?
- Is assistance offered in the recruitment of employees?
- How proven is the marketing plan?
You will be able to find the answers to these questions from a range of sources. Firstly, browse through the website of the company in question, and perform Google searches to find out what other people have written about them. Then, talk with a professional franchise broker or consultant and contact a few people who are currently operating franchises of the company that you are evaluating. Finally, speak with a representative of the franchise company.
by: Mark Walters
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