Questions to Ask Your Potential Franchisor

Owning a franchise is the dream of many aspiring entrepreneurs, but it’s important to know what you are getting yourself into before getting started. This is why you should take the time to learn more about the franchisor and the franchise you plan on partnering with.

You can ask several questions to learn more about what working with the franchisor you have chosen will be like. This blog will discuss which questions you should ask to learn more about the franchise system, the franchise’s financial structure and the legal aspects of owning a franchise.

##The Franchise System

Having an understanding of the franchisor and the franchise system you will be working with is important to your success as a franchisee. When speaking with the franchisor, ask questions about their track record and history in the industry. Learning whether they have been successful will help you decide on working with them.

It can also be helpful to learn about how much the franchise has grown over the years and how well franchisees with the network have faired. This will give you an idea of what your future working with that particular franchise may look like. It’s also important that you ask about the support you will receive from the franchisor. Do they offer training programs and ongoing support? Knowing this will tell you how invested your franchisor is in your success.

##Fees and Royalties

Finances are very important when it comes to franchising, and there are many things you will need to know. When speaking with a potential franchisor, be sure to ask about the initial franchise fees and royalty payments. You should find out if you will need to purchase equipment, which will cost you more money. Be sure to ask your franchisor if there are fees that may pop up over time that you should know about.

Asking how much you can earn as a franchisee may seem like a question you should avoid, but it’s important to know what your return on investment and earnings may look like. Questions such as these will help you to know more about the franchise you are interested in.

##Legal Details

It is vital that you have an understanding of the legal and contractual aspects of owning a franchise. The franchise agreement is a legally binding document between the franchisee and the franchisor that allows you to operate a business under the franchisor’s name. Any questions you have about the document, whether about renewal and termination clauses, your rights as a franchisee or business operations, ask them.

Understanding the legal aspects of owning a franchise can help you be prepared for any complications that may arise during your time with the franchise.

If you are ready to begin your career as a franchisee, get in touch to get started with a free consultation!