Questions To Ask Before Buying A Franchise

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Have you heard that you have to undergo an interview before investing in a franchise? If you want to become a franchisee, you will need to speak with the franchisor (or a representative). During the franchise application process, the franchisor will ask you questions about your background and goals, if you have any prior experience in the franchise industry, your plans to build a customer base, how you will finance the franchise, and how you plan to exit the business. There may seem to be a lot of questions here, but this is about getting to know you so we can establish a lasting relationship. If you want to interview with the franchisee alone, you shouldn’t expect that It is also advisable that you speak with existing It is because of these franchisees that we will have the chance to learn more about what it is like to run a franchise, as well as whatever ups and downs come with it.

We’ll allow you to ask for what you need, if you have scheduled an interview and meeting with the franchisor or current franchises but don’t know what to ask. When you are invited to an interview, you should first read the Franchise Disclosure Document (FDD) and then ask the following

Sample questions to ask a franchisor

Once you have interviewed the franchisor thoroughly and have obtained a clear understanding of who you are, it’s time for you to do the same.

Aside from disagreements, you might also ask the franchisee what his/her contractual obligations, such as termination and renewal, are in your contract. In the FDD, item 17 discusses what franchisees have to do in order to qualify for In some cases a franchise renewal may not keep the same terms and conditions as the original purchase, so franchisees should inquire if any financial changes are coming with the renewal. If the franchise is terminated by the franchisor, you should inquire as to any remaining obligations. An example would be if you were looking to open another franchise, your contract may have restrictions on the location and industry requirement

Sample questions to ask existing franchisees:

In discussions with current (or former) franchisees, you may find the tone quite different than with franchisors since the relationship is between franchisee and franchisee. At the end of the day, you want to learn what a typical day at a franchise is like the highs and the lows that come along

 

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