What questions should i ask?

bizzyb

Hi all,

I am meeting somone next week to discuss a franchise. I was wondering what would be essential questions i should ask about the franchise?
Thanks in advance.

nicndec

Your line of questioning will, to a certain extent be driven by the type of franchise that you're looking at and who your end user is likely to be but try a few of the questions below and see how you get on.

Best of luck anyway!!

Are they members of the Irish Franchise Association?

In terms of start up capital, what is the realistic amount that you're going to need to get you going. Granted, the franchise fee itself may be fairly low but remember to factor in capital equipment purchases, premises and fit out costs (unless your going mobile in which case you'll need transport). Don't forget to include fees for business related services such as insurance etc. Marketing is often taken care of as a contribution by you into the franchise 'coffers' but you can often beef up local advertising activity by shelling out of your own pocket.

How big will your territory be and how is it protected? In order to be successful you'll need the right volume of customers for your business. You don't want to end up sharing it with another franchisee from the same company in six months time.

How many of their past franchisees are no longer in business. When did this happen and why?

Who are your franchises main competitors? What makes this franchise better than their competitors?

If you require retail premises, will they assist you in choosing a location (which is paramount to your business). They should carry out site surveys and measure footfall / traffic on your behalf.

How long have they been around and what experience do they have? Is this a franchise of their own business concept (ABC Plumbing Services etc) or are they Master Franchise holders for a larger corp i.e. Costa Coffee, KFC etc.

Fergal C

Ask them for contact details of their existing franchisees so that you can contact them and get some feedback on the franchise. Also do your own research and try to contact some of their franchisees that they don't tell you about.

Great questions nicndec.