How to judge a Franchisor?
After months of hard-work and research, you have finally decided on a franchisor but still having a few hiccups. Then we tell how to best judge, a franchisor. One of the best ways to judge a franchisor is through his franchise prospectus. A prospectus can reveal a lot about the franchisors motives and objectives. A thorough analysis of the prospectus would give one a good idea of the franchisors business. We give you a low-down on some of the things to look for in a franchisor prospectus.
• Franchisors Mission and Vision The future franchisee should closely look at the franchisors vision and mission because the real motives of any businessman manifest itself in the mission and vision of the company.
• History It should give details of the franchisors history. This would help one judge the franchisors origins and also help in judging the growth of his business over the years.
• Progress Report The prospectus should also contain a progress report of the franchisors business. This report should contain various details such as profits margin, sales growth, advertising & marketing costs etc.
• Resources required The prospectus should clearly detail the resources that should be possessed by the franchisee. The prospectus should list down various criteria such as initial investment, man-power as well as all other requirements.
• Franchisee list It should ideally contain a list of all the current franchisees and their addresses. This will help you to talk to these franchisees and obtain first-hand information about the franchisors business.
• Advantages of being a franchisee It should list down all the advantages of being a franchisee.
• Rights and duties The prospectus should also clearly state the rights and duties of the franchisee as well as the franchisor.