Ask the Franchisee

Ask the Franchisee

 

WHAT SHOULD I ASK THE FRANCHISEE

ABOUT THE FRANCHISOR: 

  • How much support do you get?  

  • Are you satisfied with the franchisor?  

  • Is the franchisor fair and easy to work with?  

  • Does the franchisor listen to your concerns and accept input from the franchisees?  

  • Have you had any disputes and, if so, were you able to settle them?  

  • Do you know of any trouble the franchisor has had with other franchises, competitors, or the government?  

  • Has the franchisor kept its promises?   

ABOUT COSTS: 

  • Is your franchise profitable?  

  • What are your gross revenues?  

  • What have your pre-tax profits been for the past three years.   

  • What is your salary?   

  • How is your cash flow?  

  • Were the franchisor's start-up costs and working capital requirements accurate?   

  • Were the franchisor's profit projections and earnings claim accurate?   

  • How long did it take you to to break-even?  

  • Have you made the profit you expected to make?  

ABOUT TRAINING:  

  • Was the training by the franchisor adequate?  

  • Was the training by the franchisor effective?  

ABOUT PRODUCTS AND SERVICES: 

  • Is the product or service you sell of good quality?  

  • Is delivery of goods from the franchisor adequate?  

  • Are you getting supplies cheaper from the franchisor than you could on your own?  

  • What does the franchisor supply?  

ABOUT OPERATIONS:  

  • How effective are the operational procedures?  

  • Have the operations manuals helped you?  

  • What do you think of the manuals?  

  • Are the manuals updated on a regular basis?  

  • What did you do before you bought the franchise?  

  • Describe your day.   

  • How many hours a day do you work?  

  • How many hours a week do you work?  

  • How much freedom do you have to make decisions?  

  • Are you happy with your investment?  

  • Are you disappointed in any aspect of the business?  

  • Is there anything about the business you do not like?  

  • What do you like most about the business?  

  • What kind of problems do you encounter?  

  • What do you like least about the business?  

  • Would you do it again?  

  • Would you recommend I buy a franchise?  

ABOUT ADVERTISING AND MARKETING: 

  • How much do you spend on advertising a month?  

  • How effective is the regional or national advertising?  

  • Do you think you are getting a good value for your advertising dollars?  

  • Are you satisfied with the marketing and promotional assistance the franchisor has provided?