There are so many different franchises out there and it can be difficult to tell if a franchise is a good deal at first glance. Some franchises try to gather as many franchisees as possible just so they can stay afloat. You also have franchises who’ll make you think they’ll be behind you 100% when they will practically leave you on your own. Only by performing due diligence and asking the right questions will you be able to tell if a franchise is worth joining or not. Below are a few questions you need to ask a franchisor before you buy in.
Can You Tell Me About Your Background History?
It’s always a good idea to know a bit about a franchise’s history before you join one. This will allow you to know for how long they’ve been established, what their mission is, and whether that mission aligns with your values. You also want to know about their management team. You have to learn the history of their top executives and know what other roles they have been in before. You also have to know how many times the franchise has changed CEOs in the past. A franchise that constantly switches management will be unstable and it’s one of the clearest signs of a franchise that’s in deep trouble, so watch out for that.
How Do You Pick Franchisees?
You also have to know what criteria they use to decide whether they’re going to accept a franchisee or not. You want to know this not only so you can have an idea of what you’ll need to do, but also to see how stringent their process is. A company that takes the time to vet franchisees thoroughly is usually one that cares about its brand. This is a sign of a franchise that takes itself seriously and will probably go above and beyond to help you if you have issues.
What’s the Initial Investment for Opening a Franchise?
This is one of the most important things to look at when picking a franchise. You need to look at both the initial investment for buying the franchise and everything you’ll need to start, like inventory, real estate, equipment, etc. Franchises can cost anything from a few thousand pounds to a few million, so you will need to pay very special attention to franchise disclosure documents and know exactly how much capital you’ll need at the beginning.
If you’re looking for affordable franchising opportunities, we strongly suggest you give Franchise Local a look. They have a directory of over 400 franchises you can choose from. They have franchises of all types and sizes and for all budgets, so give the site a look and see if any opportunities pique your interest.
These are all things that will need to be discussed right away when interviewing different franchisors. Take the time necessary to verify any information they give you and don’t jump on the first opportunity you come across.