{"id":2242,"date":"2017-03-28T12:35:57","date_gmt":"2017-03-28T12:35:57","guid":{"rendered":"https:\/\/www.mbbmanagement.com\/?p=2242"},"modified":"2017-03-18T12:15:41","modified_gmt":"2017-03-18T12:15:41","slug":"top-questions-to-ask-a-franchisor","status":"publish","type":"post","link":"https:\/\/www.mbbmanagement.com\/restaurant-franchising\/top-questions-to-ask-a-franchisor\/","title":{"rendered":"Top Questions to Ask a Franchisor"},"content":{"rendered":"

You have always wanted to be a business owner and your own boss so you looked into becoming a franchisee<\/a>. You have done all your homework and saved the money you will need, but now you have to pick a franchisor. This can be a challenging decision. You want to choose a franchisor that has a brand you believe in and who will also offer you the support you will need to be successful with your unit. It is important that you meet with a few franchisors first before rushing into any decision.<\/p>\n

Here is a list of top questions you should ask each franchisor<\/a> that you are considering:<\/p>\n

What will the total cost be for your franchise unit?<\/h2>\n

When starting your own business, you don\u2019t want hidden costs to pop up along the away affecting your bottom line, especially if you are trying to operate on a tight budget. Make sure you have a very clear picture of not only start-up costs, but how much you will need to keep your business open that crucial first year. Ask about the franchise fee<\/a>, royalty fees, any add-on fees as well as cost of furniture, fixtures, equipment, lease deposits and any ingredients and supplies you will need. Also consider how much you will need for payroll. A franchisor who is really invested in their franchisees will help prepare you as much as possible.<\/p>\n

What is the success rate of existing franchisees?<\/h2>\n

You certainly don\u2019t want to invest in a market that is already so saturated and where existing franchisees are floundering. Don\u2019t be afraid to ask for evidence that franchise units are doing well. Ask if they have conducted any market studies<\/a> on the territory they are offering you to ensure that it can support more franchises. What are the demographics needed to support a franchise? Also, ask to have an honest discussion of the ups and downs of the business and what you should expect if you sign on.<\/p>\n

Do you have any pending or past legal problems?<\/h2>\n

While this might seem like an awkward question to ask, it is an important one. If they have gone through bankruptcy, going through it now or have any legal issues with their trademarks then you need to know about it upfront. It is up to you to decide if any of it is a deal breaker.<\/p>\n

What kind of support do you give your franchisees?<\/h2>\n

Every franchise program<\/a> is different. Some franchisors provide a lot of training and support to get you up and running as well as provide continually development, while others take a more hands-off approach and just give you a little bit of training in the beginning and then expect you to fly on your own. Also ask if the franchisor will be in direct competition with its franchisees. You know your personality and level of experience so make sure you pick a franchise program that will be the best fit for you.<\/p>\n

What does your training program entail?<\/h2>\n

Before signing onto a franchisor, make sure you have a clear picture of what is expected of you during the training period and what you will get out of it. Don\u2019t be afraid to ask for the little details because they can have a big impact on what you can and can\u2019t do. Here are some important details you need to know:<\/p>\n