71 Questions to Ask a Franchisor Before You Buy a Franchise

Questions to ask franchisor, putting money, and Contributing to an establishment could be a major choice that you’ll need to investigate carefully.

questions to ask franchisor

 Indeed, after you’ve done your due perseverance and narrowed down your choices, it’s vital to urge knowing the individuals who run the franchise.

You’re considering and finding out the better focuses of commerce. Within the industry, this can be called the “disclosure process.

The bigger the franchisors have multistep, organized forms that regularly begin with a phone call, and incorporate a few introductions.

And conclusion with a trip to the corporate central command for a “disclosure day” (or a virtual one because of Covid-19).

With littler brands, it may be a less-structured handle, where you’ll start with a phone call with the CEO or originator.

Either way, you may inquire a few pointed questions to decide if the establishment could be a great fit.

The Establishment Revelation Prepare is your opportunity to burrow profound into a specific establishment.

It is vital that you simply use this time to induce a well-rounded point of view and the key to doing this is often knowing what questions to ask.

To assist you with this key handle, we have put together a list of seventy-one questions to ask the franchisor.

Use this to conduct an exhaustive Due Perseverance preparation and appear to the franchisor that you simply are a genuine, shrewdly planned franchisee.

Questions Regarding the Franchisor

Questions Regarding the Franchisor

When were you set up?

How long were you set up before you started franchising?

How many companies owned units do presently have?

What are the skills and traits of your most successful franchisees?

Are you able to produce franchisee testimonials and references?

Are you overjoyed for me to speak with existing franchisees as part of my discovery and validation process?

Will you be able to bring a full list of franchisees with contact details?

How many franchisees frustrations have there been in the last few years?

 What was the origin of these failures?

How many people do you have in head office?

What support functions do they cover?

What help do we get as franchisees?

How many franchisees do you presently have?

How many franchisees do you aim to take on per year?

How do you choose your franchisees?

What specific abilities and traits do you look for?

Are you a registered member of the British Franchise Association? If you are not, why?

Questions to Ask Franchisor Concerning the Finance

What’s added as part of your franchise fee?

What other expenses will there be besides the franchise fee?

What do these costs later?

Will there be any other ongoing price other than the royalty?

Do you have advertisement finance? If so, I will expect how much to contribute?

How long does it take to get a level of break-even? Growth?

What are the midpoint gross profit margins? What costs will you incur in arriving at the net profit?

How much working capital will I need to get the business start?

How much money will I need outside the franchise price and working assets?

How much are the eminence payments and when are they expected?

How royalties are reimbursed?

Are you going to help me build an actionable plan to reach my target level of income?

Are you going to franchise business and have a resale value?

Will you be able to provide a copy of the financial statements for the franchise?

Can you provide financial reports for your franchisees?

How has unit forecasts been compiled?

How realistic are they to your chosen region?

What connection do you have with high street banks?

Do you supply financing for the franchise fee? If yes, what are the terms?

Do you have favorable suppliers for raising franchise funding?

Agreement Question to Ask Franchisor

How extensive is the franchise contracted?

Are you able to sell your business? If yes, what restraint will you have?

Can I see a duplicate of the license agreement?

Has the contract agreement been prepared by a franchise legal representative?

What happens at the end of this period?

Is there an alternative for rebirth at the end of this term? If yes, what costs will I incur?

What are the means restrictions that I should be attentive to?

What happens if I decide that the authorization is not for me?

Questions to Ask Franchisor on Business Model

What are the revenue streams for the business?

Do you take any commission on the supply of goods or materials to a franchisee?

Do I have to buy all or select items from you?

Do you have to contribute to it? If so, how much?

In what way is the training going to be structured?

Where do you go for training?

What help do you provide after training?

 Does this concern equipment?

Are you being obliged to maintain a minimum fee or minimum purchase of goods?

What happens if I cannot meet this commitment?

In what template is the operations manual?

 Was this created in-house or by an outside professional?

What happens if you do not meet your projected targets?

Will you be obliged to buy products or services from the most preferred suppliers?

How well do you preview these suppliers to ensure they provide the most value?

What is the most preferred rate franchisees achieve from these suppliers?

How much do you invest in marketing and advancing the services of the franchise?

How will you assist to ensure that you meet my expected targets?

What occurs if you do not meet your minimum targets?

Questions about the Ongoing Support:

Questions about the Ongoing Support:

Members of the head staff team will I be trading with every day?

How will they assist me?

Will I get to meet my contact during the innovation process?

How often can I suppose to hear from head office?

Will you perform regular audits on my performance? If so, how often? Is this the same for all franchisees?

What mentoring do you have presented for new franchisees?

How much time do I get to spend coaching existing franchisees?

Do franchisees meet at conferences or provincial meetings?

What are the costs connected with these dealings?

Marketing Questions on Sales

What sales and advertising activities do you embrace in the franchise fee for launching a new country?

How do you assist franchisees in advertising their business locally?

Do you offer a centralized website?

What about a neighborhood website?

How are you using social media to develop the franchise set of connections?

Do you provide centralized social media help or am I accountable for running my social media nearby?

Franchise Territories  Questions

What happens if I get a client external to my region?

Am I able to buy a subsequent territory should I make the best use of my first?

What happens with nationwide financial records?


There’s a parcel to think approximately when contributing to an establishment. A great question to ask a franchisor will joyfully reply to all of your questions and have a part to inquire you as well.

After all, a franchisor’s victory is based on the victory of its franchisees.

Frequently Asked Questions

But Mullett proposes a more succinct, repeatable system he’s come to call the “Five P’s:” prepare, probe, possibilities, propose and partner.

Cross-Cultural Business Negotiations identifies the four Cs of negotiation: common interest, conflicting interest, compromise, and conditions.

Most people succeed or fail in a negotiation based on how well-prepared they are (or are not!). We adhere to the 80/20 rule – 80% of negotiation is preparation and 20% is the actual negotiation with the other party.

You must initiate the process because whoever controls the start of the negotiations tends to control where they end. If you let the other party start negotiations, you will be constantly giving up control, often without even

Developing these three essential negotiation skills will give you the confidence to successfully negotiate any agreement.
Planning & Preparation.
Emotional Intelligence.
Creative Problem Solving.

It’s important to understand the other individual’s feelings about a situation. Asking this question can give you insight into their experiences and preferences regarding the situation that involves the negotiation.

During the process: Don’t negotiate against yourself. This is especially true if you don’t fully know the position of the other side. Much is learned about what the other side really wants during the actual negotiation process.

And doing that, he insists, is as simple as asking one magic question: “How am I supposed to do that?” These seven little words can accomplish an amazing amount, according to Voss. First off, the question obliges the other side to empathize with your position, whether they’re inclined to or not.

This does not mean you are always going to get what you want or win every negotiation, but you must remember that everything is potentially up for negotiation.

Hardball tactics are measures used in a negotiation to set a competitive tone. It generally involves using some form or power, leverage, or persuasion to coerce the other party into changing their objectives, expectations, or position in the negotiation.

When someone gives you a “last and final offer,” don’t accept it at face value. Test it. It could be they are simply asking you to play “chicken” to test your resolve. When you are given a last clear chance to take a final offer or risk the consequences, you are in this “chicken” situation.

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