Best Single Question To Ask When Buying A Franchise
March 30th, 2010
Best Single Question To Ask When Buying A Franchise
During the process of buying a franchise potential candidates come up with numerous questions. If they are prudent they will evaluate all aspects of the selected concepts business model talk to the potential franchisees and gather information during their visit to the company headquarters. In my experience of evaluating franchises I have discovered that one questions in particular provides a good general overview of what a particular franchise concept is all about.
This question is directed to the franchisees that are currently part of the system. Talking to them is one of the most important things the candidate can do when planning to buy a franchise. I recommend asking that question towards the middle of the general conversation with a specific franchise owner. Primarily this question has financial implications. Financials should be the centerpiece of any conversations held during the process of buying a franchise.
The question is: Do you think that the value that you get in this business is worth the fees and royalties paid by you to the franchisor? It may not seem like much but I found that this question more than any other gets people to open up on their experience of being a franchise owner. Most likely they ask themselves this question ever month they have to make that royalty payment. Thus you are likely to receive an elaborate answer with some personal reflection built into it
Some people will say that regardless of the situation paying fees and royalties is the deal they agreed to in the beginning and they plan to honor it. Some will say No and the candidate will have an opportunity to ask them why. Some will state that in the beginning possibly years ago it was worth it and that now it is not or worth much less providing you with even grater opportunity for the follow up questions. Some will tell you that it is worth every penny.
In the end asking this question will enable a candidate to get an indepth look of what the franchisees currently in the system think about the franchisor. Too may people interview the current owners and fail to get clear information about the company they are investigating. In my experience the question listed above provided me with the best opportunity to really dig into the details about the company I was looking at.
For more on finding the right franchise go to: http://franchiseopportunitiessearch.com
About the writer: Andre Chernih is a franchise expert editor and manager of the web site http://www.FranchiseOpportunitiesSearch.com a collaborative compilation of info articles opinions and recommendations created to help aspiring business owners learn about franchising and find the right franchise opportunity.
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