12 Questions Every Franchisee Should Ask

12 Questions Every Franchisee Should Ask

Coyote Ugly’s VP of Franchise Development Justin Livingston answers the questions on every prospective franchisee’s mind

The process of finding the franchise concept that’s perfect for you can be overwhelming. You need to find something to be passionate about; something that can bring you not only financial success but immense satisfaction, too. But how do you start narrowing down the overwhelming number of opportunities out there? Here are some helpful tips to consider when weighing the options

What is the most important thing I should be looking for?

One of the most important criteria to consider is cultural fit. Find a concept that has a culture of doing business that is a good fit for you. Industries, products, services are all about how you and/or your team spend the day, but culture is about the lifestyle you want and the company you surround yourself with. Ask yourself, does the company have my best interest at heart?

There are so many franchises, how do I know which one is the best?

The reason folks look for a franchise business is very personal, but the criteria that makes a franchise system successful is fairly straight forward. No matter the industry, the success of a franchise concept can most easily be seen in the proof of concept or in its history. Ask yourself the following questions: Does the franchisor have a clear understanding of the industry as evidenced by its own operation? Does the concept have enough faith in its programs and processes to operate the business themselves? What does the franchisor do that sets this concept apart from the competition? Strong systems started as strong concepts where the evolution of the brand has allowed the franchisor to live through the costly mistakes of a start-up business so you, the franchisee, do not have to.

How do I know if I’m ready to jump into business ownership through franchising?

Self-reflection and an honest look at your level of preparedness are key before searching for a franchise business.  Ask yourself, do you have the capital to make the investment and keep enough cash to stay safe?  Do you have the time and energy to fully commit to the success of your business by following the proven process of a franchise?  What’s your passion?  What are your short and long-term goals?

How do I set my expectations for starting a new business?

Most business start small and set you up for long-term success. Looking for a concept you can grow with is important. Understanding both your wants and needs is a good place to start. If you need to pay your mortgage with the money you earn in your first month of business ownership, perhaps you should rethink your path. Set yourself up for success by taking a conservative approach to business evaluation which will lead to meeting and exceeding goals and keeping yourself safe as you begin your new journey.
 
What are franchisees saying about the franchisor?

One of the best ways to get a feel for a day in your new life as a franchisee is talking to the people living that journey already. There are lots of questions for existing franchisees including relationship with the franchisor, support, and training from HQ but maybe the most important question to ask is, “would you do it again?”  Be sure to talk to a variety of existing owners as there is no system that is perfect for everyone and you don’t want to make a snap judgement from talking to one franchisee who may have not done the due diligence you are doing.

What’s the failure rate?

Franchisors can often spin closures as the fault of lazy franchisees who didn’t follow the system. Though some of that can be true, high percentage of closures should be a big red flag.

What support is offered beyond the initial training?

Franchisors love to brag about their sizzle; the amazing teams, the elaborate Discovery Days, and their “unrivaled” week or two of initial training. But opening is not the final destination; what happens after that?  What are the programs and processes set up for ongoing support?  Who is the team? Ask these questions to ensure your franchisor won’t disappear once you’ve started.

What systems does the franchisor have for keeping in touch with you and franchisees in touch with each other?

Back to the culture and support topics. Don’t be afraid to ask the “how”. What does the franchisor provide for opportunities to connect with the rest of the system and to the support team?  How can you learn best practices from those more seasoned operators?  What opportunities are provided to unite the system to enjoy the culture you so carefully selected to be a part of?

How did the franchise get started and what is the background of the executives?

Who were the founders? Are they still involved? What were their goals in starting the business? You should know some of the “origin story” and understand the full grasp the franchisor has on the operations of the business. Were the programs and processes built from theories or from life in the trenches?  You should feel the franchisor has adequate experience and that you and your skill sets align with theirs. 

What is the criteria for choosing a new franchisee? 

Franchisors typically are looking for a specific type or types of franchisee. Most franchisors have a list of qualifications and personality traits that fit best with their brand ethos and allows them to award franchises to those they believe they can set for success as well as keep the brand safe.  It’s important to understand those criteria to determine whether you feel your personality and skill set fit within the system as well as have a general feel for who your fellow franchisees will be.

How much do I have to invest before I can open my doors?

The total and initial investment for starting a franchise can vary from a few thousand dollars to a few million, from concept to concept. Understanding the numbers provided in the Franchise Disclosure Document (FDD), talking to franchisees, and working through your own evaluation will give you some good assumptions of what you will need. Discuss these costs in depth with the franchisor so that you have a clear understanding of your investment and can plan your funding to keep you and your investment safe and well-financed.

What sets the brand apart from the competition? 

Some franchise brands operate in highly competitive markets and industries and others are more niche and unique. Where does the brand fall? Who are the direct and indirect competitors?  Be sure to understand their unique selling points and their advantages over the competition so you know what to expect as an operator.
The search for the perfect franchise can be overwhelming but with patience, commitment, and an open mind, anyone can find the perfect fit. Like all relationships, getting to know each other is key; spend the time, ask as many questions as you need to so that you feel comfortable and make a decision based on both the head and the heart. Happy hunting!

Global Franchise Meets.

An inspirational new web video series where we meet the business leaders and influencers in International Franchising.

you may be interested in

franchise directory

  • TaxAssist Accountants

    Business & Professional Services, Financial Services, <100K, Featured

  • Cafe2U

    Food & Catering, Coffee, Take-away, <100K, Featured

  • 0800 Pizza

    Food & Catering, Fastfood, Pizza, Take-away, Featured

view more
Connect with Linkedin Logo
Global White Logo Click Here
Close button

WHAT DO WE USE YOUR INFORMATION FOR?

Any of the information we collect from you may be used in one of the following ways: To personalize your experience (your information helps us to better respond to your individual needs) To improve our website (we continually strive to improve our website offerings based on the information and feedback we receive from you) To improve customer service (your information helps us to more effectively respond to your customer service requests and support needs) To process transactions your information, whether public or private, will not be sold, exchanged, transferred, or given to any other company for any reason whatsoever, without your consent, other than for the express purpose of delivering the purchased product or service requested. To administer a contest, promotion, survey or other site feature To send periodic emails The email address you provide for order processing, will only be used to send you information and updates pertaining to your order. Note: If at any time you would like to unsubscribe from receiving future emails, we include detailed unsubscribe instructions at the bottom of each email.

HOW DO WE PROTECT YOUR INFORMATION?

We implement a variety of security measures to maintain the safety of your personal information when you place an order or enter, submit, or access your personal information We offer the use of a secure server. All supplied sensitive/credit information is transmitted via Secure Socket Layer (SSL) technology and then encrypted into our Payment gateway providers database only to be accessible by those authorized with special access rights to such systems, and are required to keep the information confidential. After a transaction, your private information (credit cards, social security numbers, financials, etc.) will not be stored on our servers.

DO WE USE COOKIES?

Yes (Cookies are small files that a site or its service provider transfers to your computers hard drive through your Web browser (if you allow) that enables the sites or service providers systems to recognize your browser and capture and remember certain information. We use cookies to help us remember and process the items in your shopping cart, understand and save your preferences for future visits, keep track of advertisements and compile aggregate data about site traffic and site interaction so that we can offer better site experiences and tools in the future. We may contract with third-party service providers to assist us in better understanding our site visitors. These service providers are not permitted to use the information collected on our behalf except to help us conduct and improve our business.

DO WE DISCLOSE ANY INFORMATION TO OUTSIDE PARTIES?

We do not sell, trade, or otherwise transfer to outside parties your personally identifiable information. This does not include trusted third parties who assist us in operating our website, conducting our business, or servicing you, so long as those parties agree to keep this information confidential. We may also release your information when we believe release is appropriate to comply with the law, enforce our site policies, or protect ours or others rights, property, or safety. However, non-personally identifiable visitor information may be provided to other parties for marketing, advertising, or other uses.

THIRD PARTY LINKS

Occasionally, at our discretion, we may include or offer third party products or services on our website. These third party sites have separate and independent privacy policies. We therefore have no responsibility or liability for the content and activities of these linked sites. Nonetheless, we seek to protect the integrity of our site and welcome any feedback about these sites.

CHILDRENS ONLINE PRIVACY PROTECTION ACT COMPLIANCE

We are in compliance with the requirements of COPPA (Childrens Online Privacy Protection Act), we do not collect any information from anyone under 13 years of age. Our website, products and services are all directed to people who are at least 13 years old or older.

ONLINE PRIVACY POLICY ONLY

This online privacy policy applies only to information collected through our website and not to information collected offline.

TERMS AND CONDITIONS

Please also visit our Terms and Conditions section establishing the use, disclaimers, and limitations of liability governing the use of our website at globalfranchisemagazine.com/terms-conditions

YOUR CONSENT

By using our site, you consent to our online privacy policy.

CHANGES TO OUR PRIVACY POLICY

If we decide to change our privacy policy, we will post those changes on this page

CONTACTING US

If there are any questions regarding this privacy policy you may contact us using the information below. All correspondence relating to the Website should be sent to: Global Franchise 21/23 Phoenix Court Hawkins Road Colchester Essex CO2 8JY Email: subscriptions@aceville.co.uk