Tuesday, January 8, 2008

Franchising - Questions Before You Start

From Entrepreneur Magazine comes Final Answer:

"Take the guesswork out of franchising with answers to these top 10 franchise questions--guaranteed to put you in the know."

1. Is it a good product or service?

2. Do I have the skills franchisees need on a daily basis, and do I have the temperament to follow the directions of the franchisor when operating the business?

3. Do I have the financial means to grow the business and reinvest in it when necessary?

4. Will the franchise help me reach my business and personal goals?

5. To what degree does the franchisor exert operational control over the franchisee?

6. Given what you know today, would you purchase this franchise again?

7. What did it actually cost you to develop your franchise?

8. Can you describe the training program?

9. Does the franchise system's management have experience managing other franchise systems?

10. Is the franchisor selective about whom they sell franchises to, or are they simply selling to whomever is willing to buy?
I have another question to add to these: do you have a lawyer to examine the franchise circular? Everything else may look good but there may be things behind the curtain that are not so pretty. Having a lawyer looking at the franchise circular and agreement gets behind that curtain.