If you are planning to acquire a franchise, then you should ask yourself, ‘Am I prepared for the interview?’ Yes, an interview you read it right! You will have a one-on-one session with the franchisor where he will ask a question to investigate if you are the right person he can trust and issue the franchise license to. And you should also prepare for question franchisor can ask a franchisee.
The franchisor will want to know about your experience in the franchise business, your aspirations, your ability to finance the franchise and your ideas for the growth of the business. This might seem overwhelming to you but it is essential for a sturdy start that can lead to a successful business.
Whether you are considering to purchase any of part-time franchises or van based franchises or food franchises; you will go through a question-answer round in any case. The session similar to an employment interview where the employer wants to know if the person is right for the job.
You will have a chance to properly understand how the franchise business works before purchasing it. You can interview the franchisor and current franchisees to gain the insight of the business, to be familiar with how things work in the industry and what the possible ups and downs are.
If you have a meeting scheduled there here are some questions that you can list down to gain relevant information and to be well prepared.
Question 1: Will the franchisor assist in deciding an appropriate site for the franchise?
If you are new in the franchising business then you will definitely need some assistance. Ask the franchisor if he will be suggesting some locations where you can open the franchise. His assistance would matter because he will know the areas where the customer footfall is higher. This will help you in strategically locating your franchise. If you already have decided to open a franchise in your area and isn’t much populated, Here are few tips to make your franchise successful in a small town.
Question 2: Do you offer any training programs?
Apart from financial stability, one of the essential elements of a successful franchise is, maintaining the operational standard. To maintain consistency throughout the franchises some franchisors offer training programs. Along these initial training sessions, there are many other different ways through which the franchisor extends support to the franchisee during the journey such as, assisting in the opening, helps in hiring quality staff, building connections with trustworthy vendors and so on.
Question 3: Who will provide extra financial assistance if needed?
If the franchisor has sufficient investment, then he can lend in some for your franchise if he sees potential in you. In addition to this, he can even recommend some sources from where you can get financial assistance, for instance, the U.S. SBA (Small Business Administration).
You will be needing enough capital to invest in the start as well as spare some for the marketing expenses, fixed assets purchases, insurance, legal assistance, and staff salaries. If you are choosing from low-cost franchises then you might not need to ask this question if you have sufficient capital.
You can even ask them about the unfortunate situations such as misunderstanding between you and the franchisor, lawsuits or in case of loss. Don’t forget to know about the renewal and expiry of the franchise agreement, and some specific clause in the agreement.
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