Kensington Company & Affiliates will hold a "Meet the Franchisor" seminar on April 26th. The seminar will provide a great opportunity to learn about a number of franchises and to speak directly with one of their representatives. With this in mind, we are pleased to share the following helpful tips.
Strong and successful franchise systems don't sell franchises, they award them. It is important to show the franchisor that you are a smart and capable prospect who is serious about their business opportunity and are motivated to be successful. As much as you are evaluating the franchisor to see if they have a successful model and are a fit for your goals, they are evaluating you to make sure that you are somebody they want to work with and have in business using their name and system.
When speaking with franchisors it is very important to keep scheduled appointments and be interactive with the franchisor. Remember that researching a business or franchise is a process. You are not going to make your decision in one phone call, or one meeting. You do not need to bombard the franchisor with all of your questions on one call.
It is a best practice to have specific goals and topics that you wish to cover with each scheduled contact with the franchisor. Below is a list of suggested questions that should be discussed with the franchisor. It is very important to take the information that you receive from the franchisor and discuss it with their franchisees to make sure there is no disconnect.
Here is a list of questions to bring with you when you meet with a Franchisor:
- How long have you been with the company and what is your background?
- Describe the industry you are in and the competition.
- Is this a growing industry?
- How sensitive is the industry to technological changes?
- Who are the competitors and what are the barriers to entry?
- How do you differentiate yourself from the competition?
- Make sure you understand the fees associated with the franchise.
- Is there a marketing fund and if so, how are the dollars collected and spent?
- How long have you been franchising?
- How many corporate units does the company own?
- Have any changes been made to the business model or system in the recent past?
- What are the costs to opening the business?
- What is your grand opening support? Have you had any failures in your system? WHY?
- How many units do you wish to award in the next year, three years, five years.
- Do I get a protected territory?
- What is the role of the owner in the business?
- Can you recommend some successful franchisees to speak with?
- Do you have an earnings claim? Please describe.
- What training and ongoing support do you offer? Describe the experience of the management team.
- Does the franchisor have any plans to sell? Go public?