Business For Sale & Franchise Search Engine  
   
My Account
Search Businesses For Sale
Location:

Category:

to refine your search results use advanced search  
Franchise Opportunities

Sell Your Business, Starting at $20.99 per month
Small Business Resources > Questions to Ask a Franchisor When Buying a Franchise

Questions to Ask a Franchisor When Buying a Franchise

Those with an entrepreneurial spirit and seasoned business owners agree that franchises hold great advantages over independently owned businesses. So many of the "back office" concerns have been developed, tested, refined, and often even perfected. Most independent business owners can't devote the time or resources to compete with the operational and marketing systems that franchised models provide.

So buying into a franchise system seems to make a lot of sense for those who want to be in business for themselves but not by themselves. But how do you know what questions to ask franchisors as they present their franchise system to you with the ultimate goal of asking you for a commitment to join? This commitment involves signing a contract and a check.

Some basic questions are:

What is my total estimated cost to open?

Does this amount include working capital?

How many franchised units (stores or outlets) have failed and why?

How many people signed up with your franchise and were never able opened?

Who are the competitors and why would I choose you over them?

Do you provide any guidance, in writing, about what I can potentially earn?

What is my territory and how is it protected?

Do franchisees have a say in how our advertising dollars are spent? (Many franchises have an "Ad Council" made up of franchisees)

How does the franchisor make their money?

What materials or services am I required to buy directly from the franchisor?

These questions are a start and the franchisors' willingness to answer them should help you gauge their sincerity. The existing franchisees are often a more productive group to speak with. The existing franchisees-just like you-went through a research process with the franchisor and now are either reaping the rewards of franchise ownership or regretting their decision. You'll find that they are usually very willing to provide you with their thoughts, regrets, and opinions.

About the Author
About the Author
Peter Casey is a well known franchise professional who consults with franchise systems and franchise seekers. As an author, public speaker & franchise consultant Peter has educated thousands of people about their options in the franchise industry. For more info on Peter or his company visit the Capital Franchise Group web site











Related Resources
Buying a Franchise
10 Reasons to Buy a Franchise
Advantages & Disadvantages of Owning a Franchise
Advantages and Disadvantages of a Start-Up Business
Advantages of Investing in a Franchised Business
An Overview of Today's Business Opportunity Market
Auto Franchises
Become a Franchise Consultant
Businesses under $10,000
Buy a Franchise or Create Your Own Start-Up
Buy a Great Franchise Opportunity
Buying A Franchise
Buying a Franchise with Bad Credit
Coffee Franchises
Do Home Based Businesses & Franchises Really Work?
FDD's Item 19 Can Help You Decide If You Should Buy a Franchise
Food Franchises
Franchise Alliance
Franchise Information
Franchise Lawyers
Franchise Loans - Apply for a Loan to Buy a Franchise
Franchise Reviews
Franchise Royalties - What are Franchise Royalties?
Franchises - What To Consider
Free Small Business Magazines
Healthy Fast Food Franchises
House Cleaning Franchises
How Much Does a 7-Eleven Franchise Cost?
How Much Does a Dunkin Donuts Franchise Cost?
How Much Does a Franchise Cost
How Much Does a Krispy Kreme Franchise Cost?
How Much Does a McDonald's Franchise Cost?
How Much Does a Panera Franchise Cost?
How Much Does a Pinkberry Franchise Cost?
How Much Does a Pizza Hut Franchise Cost?
How Much Does a Starbucks Franchise Cost?
How Much Does a Wendy's Franchise Cost?
How to Finance a Franchise
How to Increase your Chances of Owning a Successful Franchise
How to Make More of Your Franchise
Is Franchising For You?
Is Starbucks a Franchise?
Low Cost Business Ideas
Managing Your Franchise Business
Master Franchise Information
Questions to Ask a Franchisor When Buying a Franchise
Reasons to Use a Franchise Consultant
Receive a FREE Franchise Consultation
Sell a Franchise
Seven Secrets to Buying a Franchise
Should I Franchise My Business?
Ten Common Mistakes Made by Franchise Buyers
The Differences Between a Franchise & Business Opportunity
The Differences between Large and Small Franchises
The History of Franchising
Three Signs Of A Franchise Winner
To Franchise or not to Franchise
Top 5 Buying Factors when Buying a Franchise - Part I
Top 5 Buying Factors when Buying a Franchise - Part II
What is a Master Franchise?
What is a Uniform Franchise Offering Circular (UFOC)?
What To Take Into Consideration When Starting A Franchise
What to Think About Before Buying a Franchise
Why Should I Buy a Franchise?
©2010 BusinessMart.com.
Broker Membership | Terms Of Use | Financial Disclaimer | Privacy Policy | Resources | Franchise Opportunities | Website Traffic Ranking | Sitemap | Careers | Contact Us