QUESTIONS FOR THE FRANCHISOR
We have compiled a list of questions that you need to ask the franchisor or their representatives in order to get all the necessary information about the franchise as quickly as possible.
It can be very difficult for a beginner franchisee to choose and find a successful and effective franchise. This is partly because it is simply not clear what to ask the franchisor. Below we have collected all the main questions that you should ask the franchisor at the first meeting. Having received answers to these questions, you will have enough data to make conclusions: both about the franchise, and about the brand, and about the support that the franchisor provides within the network.
List of questions to the franchise founder
1
Is the trademark registered? Do you have a registration certificate? What is the certificate number?
2
How many locations are currently in the network? How many are owned and how many are franchised?
3
In which cities is the network present? Which cities do you plan to enter in the near future?
4
What is your company's mission statement?
5
Who are your competitors?
6
What are your key differentiators from your competitors?
7
Who is your target customer?
8
What are the advantages of your product?
9
What are the advantages of your brand?
10
What metrics confirm the strength of your brand?
11
What is the budget required to open a franchise and for franchise payments?
12
When can I expect to break even? Can I study the financial model?
13
In what month does the business break even?
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14
What do you provide under your franchise program?
15
What kind of support do you provide to franchisees? What do you help with?
16
Who runs the advertising campaigns? You or the franchisee?
17
Who designs the retail outlet?
18
What restrictions does your franchise impose: choice of suppliers, choice of contractors?
19
What reports are franchisees required to submit?
20
What accounting system does the company use? Are franchisees required to use it, or are they free to choose any?
21
What are the penalties for non-compliance with standards and for violations?
22
How many locations have already closed? For what reason?
23
Were you the initiator of the closure of the locations? What was the reason?
24
What advantages will I get from working with you compared to opening my own business?
25
What are your requirements for potential franchisees?
26
Do I have enough experience to become a franchisee?
27
Do I have enough funds to open a franchise business?
28
Is my region suitable for opening a franchise?
29
How long does the opening process take?
30
What guarantees do you give to franchisees? Can I study the franchise agreement?
31
Which existing and former franchisees could I talk to? Will you provide contacts? Which franchisees would you recommend talking to first?
32
What are the possible discounts on the franchise fee and royalties? Under what conditions?