Important Questions to Ask Franchisors

Important Questions to Ask Franchisors

Discovery Days are when the franchisor zeroes in on the prospective franchisees and the deal between them is set in the shortest possible time. Discovery Days are organized by franchisors to meet franchisees who will take their brand places. However, a franchisee must keep in mind that a Discovery Day is a sales presentation and what goes on PowerPoint presentations may just be sales fluff. It is important therefore for a potential franchisee to get clarifications and ask as many questions as possible.

Here are a list of questions, one may ask at a Discovery Day.

1. What are the business owner’s long term plans?

It’s good to know beforehand if there’s enough room for a new franchise. Investors should ask franchisors their long term goals and ask if they are considering selling off the company to someone else or if they are acquiring a new company.

2. Does the company get many complaints?

It’s important to ask the business owner if there are many complaints about the product or franchises. Another good question would be how the company deals with complaints and negative press.

3. Has the company terminated any franchisees?

Franchisors, at some point or another may terminate franchisees. This could be because of a host of reasons. Make sure to ask this question and understand what you can do right to skip this mess.

4. Have any franchisees left the system?

Sometimes franchisees will leave on their own accord because of problems owing to sales, operational costs, location, etc. Make sure to ask the company if they have faced a similar situation and what is their policy on franchisees choosing to leave.

5. Does the franchisor hire independent franchise consultants?

Sometimes when franchisors cannot find franchisees easily, they resort to hiring franchise consultants who do the bidding for them. These consultants charge their own fees and usually the franchisees end up paying for their services.

 

 

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Franchise Discovery helped us set up our waffle franchise, from start to finish. We didn't have to run about for licenses, and all the paperwork was taken care of. We are now running the business happily. Thank you Franchise Discovery.

Vijay

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When we first came to Franchise Discovery, we didn't have much idea about starting a business. My wife and I are both from the service industry, but we wanted to get into business so that we could stop the 9 to 5 routine. We were helped beyond our imagination, and hope to start more businesses in the future.

Ranjan Singh

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Franchise Discovery made it easy for us to find investors for the business. It really helps when you have contacts in the marketplace, and we're happy to associate ourselves with Franchise Discovery.

Shrenik Shah

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Being in the franchise business for long we have come across many people. We have found Franchise Discovery to match us with the right investors according to their needs. This helps us as well as the investors, many of who are investing for the first time.

Ankit Shah

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I thank everyone at Franchise Discovery for the smooth functioning of starting our set up. We were skeptical at how to run a fast food business, but we got all the help and expertise we needed and couldn't be more relieved. We are now thinking of taking up another franchise of desserts this time. Hope things go well again.

Mohan