Questions to ask your franchisor to assess their franchise opportunity
Here is a list of questions one may ask to his/her franchisor. However, one can tailor the questions as per his/her needs while questioning the franchisor, depending on the type of franchise chosen.
Q1. Will you supply me with a breakdown of all costs which are necessary to open the business?
Q2. Are than any other cost I’ll have to put in or would be asked or expected to put in?
Q3. Do I have to pay a deposit payment and if I do not proceed will I lose that money or any part of it?
Q4. How much working capital will be needed by me and how would u be able to help me in estimating my projections?
Q5. From the time I sign the contract how long will it take to begin with trading?
Q6. How long will the training last for and what will it consist of?
Q7. Are training costs also included in my franchise fee?
Q8. What would be the expected break even for me and how long does it usually take to reach there?
Q9. After I have opened, what ongoing support will I be provided with? And do you provide some operations manual with instruction, if you do, can I see them prior to signing?
Q10. How thoroughly do you scrutinize prospective franchisees to maintain a high standard in the network?
A franchisee must ask questions in case of a problem and to ensure smooth functioning of the business. A level of comfort and transparency between a franchisee and franchiser helps both of them to stay updated with the flow of business, thus, ensuring growth.