General Questions
- What is the success rate of the existing franchisees?
- Is there a franchise owners association?
- Is there a franchise advisory council?
- Are any senior management or key personnel leaving the system?
- Must the franchisee purchase products or services from the franchisor?
- Does the franchisor earn income on purchases?
- How much does the franchisor earn?
- What other initial or continuing services does the franchisor provide?
- What do these cost?
Research and Marketing
- What type of consumer research has the company conducted?
- Has the franchisor conducted any market studies on the territories?
- What are the traffic counts required to support a franchise?
- Who conducts the training and what are their backgrounds?
- Does the franchisor provide training materials for training new staff in addition to the operations manuals?
- Does the franchisor provide hands-on assistance during the pre-opening and initial period?
- What types, duration, and cost?
- What type of consumer advertising does the company recommend?
- What percentage of sales is recommended or required for advertising or marketing?
- How do the franchisees obtain their sales leads or customers?
- What is the franchisor’s national/regional advertising program and budget?
- What portion of the national/regional advertising contribution is used for administrative/corporate/agency expenses and fees?
- What are the primary advertising/marketing vehicles?
- What is the grand opening advertising program and cost?
- What other initial or continuing services does the franchisor provide?
- What do these cost?
Products and Services
- Are there any new products or services under consideration for addition to the franchise?
- Are there any restrictions on the distribution or sale of the product?
- Is there a guarantee or warranty program?
- How is it administered and what is the cost?
- Is there a minimum that must be purchased?
- Must the franchisee purchase products or services from the franchisor?
- Does the franchisor earn income on purchases?
- How much does the franchisor earn?
Operations & Support
- What are the roles and responsibilities of the field staff?
- How many locations does each franchise consultant work?
- What is the background of the franchise consultant I will be working with?
- Can I meet that person before purchasing the franchise?
- How often does the field staff visit a franchisee’s location?
- Exactly what kind of assistance is given?
- What kind of supervision or quality control is there?
- What, if any, is the charge for assistance?
- What kind of business management systems are provided to boost sales and profits?
- What other initial or continuing services does the franchisor provide?
- What do these cost?
- Does the franchisor provide training materials for training new staff in addition to the operations manuals?
- Does the franchisor provide hands-on assistance during the pre-opening and initial period?
- What types, duration, and cost?