what to ask before you buy a franchise

$50 frachise questions to ask$

In that location are many business-minded entrepreneurs out there who want to buy a franchise. The industry comprises 48,600 concern units, employs 710,000 people and generated £17 billion in 201 eight. Six in 10 franchise units plow over more than £250,000 and four in x tin be operated from domicile (BFA/NatWest).

In short, becoming a franchisee enables investors to be business owners without having to fix a brand from scratch and run a risk financial instability with a brand-new business concern model. So, it's no surprise that running a franchise tops the priority list for savvy entrepreneurs all across the world.

All the same, it'south not as simple as condign a franchisee and turning a profit a few months later. If you're to succeed, y'all'll need to make sure you lot are capable of running your own business and that the franchise you lot choose is suitable. The only way you can do this is to perform comprehensive due diligence before you lot make your conclusion.

As Jerry Baldwin, Co-Founder of Starbucks says: "It really helps if you are doing something you love instead of something you are just spending a bunch of money on. Yous tin can become very discouraged if you lot're not involved in something 18-carat, something that you believe in and are committed to."

Don't apologise for thorough inquiry

A franchise agreement is a legally binding document, and then information technology's not like shooting fish in a barrel to go out of once you've signed on the dotted line. You'll need to ask plenty of questions and advisedly consider their answers if you're to brand an informed decision.

Don't be concerned if you think you're contacting the franchisor with a lot of queries; it'due south in their all-time interests that you're completely happy with the opportunity. This is considering their business could be at risk if it takes on an entrepreneur who isn't committed to the brand or capable of bringing a franchise unit to profitability. A franchisor is only successful if their franchisees succeed, so they should be glad to respond whatsoever questions that you have so you can piece of work out whether it'due south the right opportunity for you lot.

50 franchise questions

To get y'all started, here are our 50 questions to inquire earlier you buy a franchise. When you lot know the answers to them, you'll be able to work out whether yous're the right fit for the company and prepare to make your move if you are.

Virtually you

Ask yourself:

1. What are my strengths and weaknesses?
two. What am I passionate about?
3. How much can I beget to invest?
4. How much income do I need to back up my lifestyle?

Virtually the concern

v. How long has the business been franchised?
half-dozen. How did the business start and how long was it established before it became a franchise network?
7. Who founded the franchise?
8. What is their background, feel and skillset?
9. Who owns the intellectual property?
ten. What are the long-term plans for the franchise?
11. What sets you apart from your competitors?
12. How much working capital letter is needed as office of the total franchise investment?
thirteen. How many other franchise locations are there?
fourteen. What is the success charge per unit of franchisees?
fifteen. What percent of franchisees renew their franchise understanding?
16. Are you a fellow member of the British Franchise Association?

About the training and support

17. What does the initial training involve?
18. Is the cost of the initial training included in the franchise fee?
nineteen. What back up will I receive on a day-to-day basis?
20. Are there opportunities to receive regular, ongoing training?
21. What marketing support is provided?
22. Are franchisees encouraged to meet regularly as role of a more all-encompassing support network?
23. How exercise you lot support underperforming franchises?

Almost the franchise understanding

24. How long is a franchise term?
25. Will my territory be protected?
26. How do you resolve disagreements or disputes?
27. What happens if my business organisation is not performing as expected?
28. How do I sell my business?

Virtually the franchise operations

29. What will a typical day exist like for me every bit a franchisee?
30. What is the most significant challenge that nigh franchisees face?
31. Volition I take any control over marketing and supplier decisions?
32. Volition I go back up with employee recruitment and training?
33. Are there whatever benchmark targets in place that need to be accomplished?
34. Is the operations manual up to engagement and accessible?
35. Are there templates bachelor for local marketing activity?

Virtually site selection

36. Who is responsible for finding a location for the franchise?
37. What criteria are used to find the correct location?
38. Do you negotiate the charter on my behalf?
39. Volition you manage the refurbishment and fit out of the site?
40. How frequently am I obliged to refurbish or update my franchise?

Well-nigh the franchisee recruitment procedure

41. What attributes are you looking for in a franchisee?
42. What makes a successful franchisee?
43. Will I become a chance to meet with the support team before signing the franchise agreement?

About other franchisees

44. Tin can I run into with existing franchisees from within the network?

Then, ask existing franchisees:

45. Are you satisfied with the level of preparation and support you receive?
46. How does the franchisor bargain with disharmonize?
47. How long did it take you to make a profit?
48. How many hours practice yous dedicate to your business?
49. If you lot had the adventure, would you lot buy the franchise again?
50. Tin can I visit your franchise and shadow you for the twenty-four hours?

Why is information technology important to ask these questions?

The answers to these questions should assistance y'all narrow down the franchise opportunities that yous're suited to. You don't necessarily need previous experience or passion for the industry you're investing in, but having these attributes can help you meet success faster.

Merely you can answer the start gear up of questions about your suitability to get a franchisee. There are over 900 franchise brands operating in the UK, so information technology'southward essential y'all work out whether franchising is correct for you and which franchise brands you should approach.

For this reason, it'south a practiced idea to perform a self-assessment before yous approach any franchisors. This style you can go along on your franchising journey confident in the cognition that yous have what information technology takes to be a franchisee.

When it comes to finances, information technology's vital you consider the total amount yous'll need to invest, rather than just looking at the franchise fee. Some franchises crave significant set-up costs to go the concern off the footing, and then you'll demand to be able to finance this and brand sure you take plenty to continue the business organisation afloat over the start few months. For this reason, don't forget to salvage sufficient working capital and money for ongoing fees too.

Finally, running a assisting franchise is a great ambition to have, only if this damages your work-life residual, you may end up resenting your business. That'due south why it'south so important to find a franchise that offers the whole package. The right i will generate a salubrious income and require the level of dedication and commitment that you're willing to sacrifice.

Talking to other franchisees

Meeting with existing franchisees to ask franchise questions tin can be incredibly helpful when you lot're trying to build up a picture of a business. If the franchisor tries to stop y'all talking to their franchisees or select who you speak to, proceed with circumspection – they may have something to hide.

A good franchisor volition understand that buying a franchise is a huge conclusion, and should allow – and encourage – you to meet with existing franchisees inside the network before you commit. Any franchisor worth their salt will be interested in making sure you lot're the right person to represent their make, non tricking you into opening up a new franchise unit.

Take your fourth dimension when talking to franchisees and continue asking questions until yous are confident the franchise suits your requirements and working mode.

Finding a franchise

You should do every bit much enquiry as you need to before you experience comfortable taking the step to becoming a franchisee. This might involve scouring online franchise websites, tracking down industry high-flyers and chatting to existing franchisees. Nonetheless, here are a few resources you could use to kicking off your enquiry journeying:

Take a expect at the British Franchise Association's Franchisor Directory. The BFA only works with franchises that are "proven, protected, ethical, sustainable and costless of ambiguity", and then you tin rest assured y'all'll only run across top-quality businesses.
Here at Point Franchise, we take a number of articles that explain how to buy a franchise and highlight potential issues to look out for. Why not start with Condign a Franchisee?
Y'all can likewise browse an extensive list of franchises that are currently looking for new franchisees on our UK franchise directory. On our website, yous can filter by manufacture, investment price and popularity, so you'll be able to discover great options at the click of a button.

Winters Mingth