Questions to ask a potential franchisor

On Their Business

  • How long have you been franchising?
  • May I speak with your franchisees, and can I choose who?
  • What does your Head Office support team consist of, can I meet them before I start my business?
  • How many franchisee failures have there been since you started?
  • How do you choose your franchisees? Do you turn people away?

 

On Costs

  • How much is the franchise fee, and what does this include?
  • How much working capital will I need?
  • May I see financial projections and are these based on actual performance in the network?
  • Did you run a pilot or company owned franchise before you launched? If not, why not?
  • Can you assist me with raising finance and will the finance company require security?

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