Deciding whether or not to invest in a franchise is an important decision. There are many factors to consider and it’s important to do your due diligence before making any commitments.
One of the best ways to learn about a franchise business is to talk to existing franchisees. They can give you first-hand insights into what it’s like to own and operate a franchise unit.
55 Questions to ask franchisees:
- How long have you been a franchisee?
- Why did you decide to become a franchisee?
- Would you do it again?
- Why did you choose this franchise company in particular?
- What are the opening hours of your shop?
- What is your background?
- How has your business changed since you started franchising?
- How has the industry changed since you started franchising?
- How much did you pay to get started? This includes the initial investment fee and any other start-up costs such as set-up, equipment, inventory, etc.
- How long did it take you to break even?
- What are your monthly sales?
- What is your monthly/yearly gross revenue?
- What are your monthly/annual net profits?
- How are your sales doing? Are they growing, stable, or declining?
- What about your profits? Are they growing, stable, or declining?
- What are your ongoing royalties and marketing fees? And how do these fees relate to your gross sales?
- What are your goals for the future of your franchise?
- What kind of training and support does the franchisor provide?
- Have you ever had any problems with the franchisor? If so, how were they resolved?
- Have you ever needed to use the franchisor’s support? If so, how responsive were they?
- How involved is the franchisor in the day-to-day operations? Do they provide guidance and direction, or do they let you do things your way?
- Did the franchisor provide adequate training and support before opening? If not, what could they have done better?
- Does the franchisor provide ongoing training opportunities for owners and employees? If not, would you like to see more support in this area?
- Have you ever had problems with getting supplies or inventory from the franchisor or approved vendors? If so, what was the problem and how was it resolved?
- Have there been any changes in the franchisor’s management team since you became a franchisee? If so, how have these changes affected your business?
- How well do you feel the franchisor understands your needs as a franchisee?
- Do you feel that the franchisor is always honest and transparent with you?
- Do you feel that your voice is heard when it comes to decision-making within the franchise system?
- Are there any restrictions on where you can source your supplies? If so, were these restrictions a problem for you?
- What are your biggest challenges as a franchisee?
- What advice would you give to someone considering investing in this franchise?
- Have there been any major changes (new leadership, changes to the business model, etc.) since you joined the franchise? And if so, how did those changes impact your business?
- How has the pandemic affected your business?
- Do you have an exclusive territory? If so, how well has this worked for you?
- If not, has competition from other entities been a problem?
- What do you think differentiates this franchise from other franchises in the same industry?
- Would you recommend this franchise to others? And if not, why not?
- Have you ever thought about selling the business?
- How much freedom do you have to run your franchise business the way you want?
- What are the most important factors that contributed to your success?
- Do you have any employees? If so, how many and what role do they play in your business?
- What do you think is the greatest advantage of owning a franchise?
- Do you have any questions for us about the franchisor or the franchising process?
- What do you wish you had known before you became a franchisee?
- How has franchise ownership affected your lifestyle?
- What are the biggest sacrifices you have made since becoming a franchisee?
- What are the biggest challenges you face daily?
- How much time do you spend per week working on your business?
- What are some of the most important lessons you have learned since becoming a franchisee?
- Do you feel there is an active community of franchisees? If not, what do you think is the reason?
- Is there anything else potential franchisees should know about this opportunity that we have not covered here?
- What do you think are the biggest benefits of being a franchisee?
- What trends do you think are emerging in the industry?
- How has being a franchisee changed your life?
- Are there any other costs associated with owning this franchise system that potential franchisees should be aware of?
Frequently Asked Questions
What qualifications do you need to own franchise business?
There are a few qualifications you need to meet to become a franchisee. The most important one is that you have the money to invest in the franchise business. You must also have some business experience and be able to run the franchise business according to the company’s rules. Owning a franchise can be a great way to start your own business, but make sure you do your research beforehand so you know what you are getting into.
How do you evaluate franchise agreements?
Evaluating a franchise agreement can be difficult because there are many potential factors to consider. Some of the key items that should be evaluated include the initial investment, the royalty fees, marketing, and advertising requirements, and the length of the agreement.
It is also important to check the financial stability of the business and determine whether or not they have a good track record. By doing your homework and asking a lot of questions, you can make an informed decision about whether or not a particular franchise is right for you.
Why is communication important for a franchise business?
For a franchise business to be successful, communication is key. Franchisors and franchisees need to be able to communicate effectively with each other to share information and make decisions that will help the business grow. Poor communication can lead to misunderstandings and conflicts that can be detrimental to the business. By establishing good communication practices, franchisors and franchisees can work together to build a successful franchise business.
Conclusion
Talking with current and former franchisees is one of the best ways to learn more about a particular franchise opportunity – and you should do so before making a decision. These questions will help you get the conversation started, and hopefully, give you insight into whether or not this particular franchise opportunity is right for you.
