Questions for franchisors
May 10, 2019
What is the franchisor support & involvement for the first year? After the first year? Who is your competition and where does this company fit in and compare to the competition? What franchisees have succeeded at a faster rate than average and why? (what is average) What franchisees have failed in your system and why? What is a realistic timeframe of working capital I need? What territory or how many locations do I need to insure I get my “need” income of $xxx and my “want” income of $xxx? (they may not answer this question due to earnnings claims, but still good to ask!) What are the day to day responsibilities of the franchisee? What does a typical day look like? If I want to continue, will you provide me a list of names of franchisees in your system with similar demographics to my area, similar background to mine, and a variety of time in the business?(you can call ALL franchisees, but get the initial list from them so you talk to those with similar goals to yours) Are their internal funding options for this business? If not, have any of your franchisees received funding from the SBA or other business loan sources? Is the franchise transferable? Have you had franchisees sell their business?