Questions for a franchisee embarking on a franchise
While franchising a business is a promising business prospect, before embarking on the franchising business there are some crucial factors you must consider and clarify:
- Is this franchising business the right one for me?
- Do I have a clear understanding of the business?
- How strong is the franchisor’s brand?
- What has been the track record of the franchisor’s business
- How has the company dealt with the franchisees and how good is the relationship?
- Has any franchise of the company failed and why have they failed?
- How promising is the future and the profitability of this business and what are the possible threats to the business?
- What are the costs that you would incur?
- How much training is required?
- What are the marketing and advertising strategies and plans for the future?
- Who are the other franchisees?
Apart from these general enquiries about the franchisor’s business, you must ask the franchisor in detail about the arrangement, agreement and the payments. There is absolute clarity required in a franchising business. This will not just help you in having a good relationship with the franchisor; it will also ensure the profitability and efficiency of the business. Territorial demarcations and knowledge about who the other franchisees are is crucial. Make sure that the franchisor has clear cut policies on handling the franchise network. Also do find out how the franchisor handles the grievances of its franchisees.