Dos and don’ts for an aspiring franchisee
After lots of deliberation, you have finally zeroed in on the franchise that you want to buy. All the financial audits, market research and meeting current franchisees are all over. Now it is show time, it's time to bag the franchise that you really want, a franchise that you consider to be your ticket to a great life. But it's not up to you, the franchisor will decide whether you deserve to run his franchise or not. At such a vital stage a little mistake can prove to be costly, so here are a few tips for aspiring franchises:
• Do answer all the questions honestly. Do not try to fake any answer. If there is a weakness, it can worked upon but it should not be hidden from the franchisor. Be honest with the franchisor as this will be of great help in the future.
• Do give the franchisor accurate details of all the resources that you have at your disposal. This will help the franchisor analyze your capabilities.
• Do your homework before the interview with the franchisor takes place. Talk to existing franchisees and try and determine the kind of questions that the franchisor usually asks. Also familiarize yourself with the franchisors business.
• Be dressed smartly for the meeting, not too formal nor too casual and remember a book is always (sometimes unfortunately) judged by its cover. So dress well.
• Do maintain a formal record of all the interactions that have taken place between you and the franchisor. The interaction should also be very professional and pleasant but not casual. A formal record will help solve disputes, if any.
• Don’t treat the interview as just another formality. Franchisors are very selective and will always look for sincerity and commitment and hence they give a lot of importance to these interviews. So it is advisable that you too take them seriously
• Don’t jump to conclusions. Don’t just buy the franchise because you want it so badly but only buy it if the decision makes business sense.
• Don’t act as if you know everything about the business. Ask questions if you are unsure about things.