What to Ask a Franchisor
Putting up your own business from scratch is a very bold move and one that can be quite nerve-wracking. Besides, you'd have to market it yourself and think of ways to promote it to the crowd, with no assurance that it will actually be successful. This is one of the main reasons franchises are so popular these days. Aside from having a marketing scheme in mind, you also have the amazing benefit of having a group of people guide you through it.
However, not all of your questions will be answered by the franchisor right away, which is why it is important to prepare a set of questions that you'd want to ask your franchisor before deciding on buying the franchise. Whether you are looking for restaurant, printing, or janitorial service franchise opportunities, you definitely have to keep these questions in mind:
Can I ask you about the competitors?
You'd have a couple of competitors in your area, no matter what type of business you are trying to franchise. You should always ask your franchisor how they usually address this issue and how they stand out from the rest. You definitely want your business to be unique even if it's a franchise of another business. You want people to come to you and not your competitors, which is why it is important to work this through with your franchisor.
How do you usually secure the best prices?
You'd want to secure the best prices from vendors to keep the reselling costs down. Ask the franchisor if they usually negotiate with the vendors and if they get discounts and wholesale prices for certain products and services.
Are you planning on selling the business soon?
Having a change in management is a huge deal. It can even affect the business and its operations, which is why it is a must to ask the franchisor if they are planning on selling the business in the next five years or so. You should also ask them where they see the company and the business in five years, no matter what their answer to the first question is.
What support do you usually provide?
You'd want to ask the franchisor what type of support they usually provide to their franchisees. If this is your first time owning and managing a franchise, then you'd want as much help and support that you can get. Ask them how they help their franchisees with the business strategy and marketing.
What was the biggest disaster you've experienced?
Ask them about the biggest disaster or problem that they've had to go through when it comes to the business. You should also ask how they dealt with it and what types of solutions they implemented to resolve the problem. You would also want to know how they handle different types of issues and problems so that you'll know that they'll be able to give you support if ever something happens.
Getting a franchise is ideal for people who are just starting their journey as an entrepreneur. If you've got enough capital and you are looking for a new business to handle, then go ahead and try getting a franchise today.