Questions about the franchisor:
- How much support do you get?
- Are you satisfied with the franchisor?
- Is the franchisor fair and easy to work with?
- Does the franchisor listen to your concerns and accept input from the franchisees?
- Have you had any disputes and, if so, were you able to settle them?
- Do you know of any trouble the franchisor has had with other franchises, competitors, or the government?
- Has the franchisor kept its promises?
We recommend that potential franchisees ask these five questions to understand if a franchise opportunity will be right for them.
Questions about costs:
- Is your franchise profitable?
- What are your gross revenues?
- What have your pre-tax profits been for the past three years.
- What is your salary?
- How is your cash flow?
- Were the franchisor's start-up costs and working capital requirements accurate?
- Were the franchisor's profit projections and earnings claim accurate?
- How long did it take you to to break-even?
- Have you made the profit you expected to make?
Questions about training:
- Was the training by the franchisor adequate?
- Was the training by the franchisor effective?
Questions about products and services:
- Is the product or service you sell of good quality?
- Is delivery of goods from the franchisor adequate?
- Are you getting supplies cheaper from the franchisor than you could on your own?
- What does the franchisor supply?
Question about operations:
- How effective are the operational procedures?
- Have the operations manuals helped you?
- What do you think of the manuals?
- Are the manuals updated on a regular basis?
- What did you do before you bought the franchise?
- Describe your day.
- How many hours a day do you work?
- How many hours a week do you work?
- How much freedom do you have to make decisions?
- Are you happy with your investment?
- Are you disappointed in any aspect of the business?
- Is there anything about the business you do not like?
- What do you like most about the business?
- What kind of problems do you encounter?
- What do you like least about the business?
- Would you do it again?
- Would you recommend I buy a franchise?
Questions about advertising and marketing:
- How much do you spend on advertising a month?
- How effective is the regional or national advertising?
- Do you think you are getting a good value for your advertising dollars?
- Are you satisfied with the marketing and promotional assistance the franchisor has provided?