Questions to Ask Franchisees Before Buying a Franchise
When you are buying a franchise one of the best sources of information is existing franchisees. The following list of questions to ask before buying a franchise is not exhaustive, but it can be used as a template to assist you in understanding questions to ask franchisees that are currently in business.
Critical Questions to Ask Franchisees Before Buying a Franchise
- How long have you been in business? This is very important because someone who has been in business for less than a year probably cannot give you reliable information. Look for franchisees who have been in business for at least two or three years.
- Is your business making a profit, after paying yourself a reasonable salary or wage? Have you ever had to not pay yourself a salary or wage?
- Is the franchise what the franchisor said it would be?
- How frequently do you hear from the franchisor’s representatives? Do they assist you in operating your business? In good systems, franchisor representatives visit two to four times a year.
- Are the computer systems, point of sale systems, and other mechanical systems functional and helpful?
Other Questions to Ask Franchisees Before Buying a Franchise
- If you want to make a complaint, how do you do it, and how does the franchisor respond?
- What would you change?
- Do you know of other franchisees? Do they talk to each other? If so, who else do you think might be helpful to me in evaluating this purchase?
- What is the most negative thing you can say about the franchisor?
- If you had to do it over, would you do it over again?
These are just several questions to ask franchisees before buying a franchise. Always have more questions that are more distinct to the industry that you want to go into to get specific information that will be more meaningful to your franchise.
Searching for Expert Franchise Law Assistance?
Beyond formulating questions to ask before buying a franchise, and speaking with existing franchisees, settle for nothing less than expert legal guidance when buying a franchise. The franchise attorneys at Garner, Ginsburg & Johnsen P.A. have an established track record in helping new franchisees. Contact us today for assistance.