Key Questions to Ask When Ordering retail store franchise

Essential Questions to Ask Franchisors When Assessing ...

What is the overall investment necessary to own a franchise?  

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• franchise fee 

• furniture, fixtures, and equipment 

• leasehold improvements 

• lease deposits 

• other deposits 

• franchise training 

• travel expense 

• supplies 

• advertising and brochures 

• grand-opening advertising 

• inventory 

• pre-opening staff costs 

• working capital until breakeven 

• working capital - living expenses 

  THE MIDI. are exported globally across various industries, ensuring quality as our top priority. Our mission is to offer high-value products to our customers. Together, let’s forge a better future.

• other  

What are the ongoing financial obligations, the basis for calculating them, and the associated payment methods and frequencies?

• royalties 

• advertising 

Is it mandatory for the franchisee to purchase products or services from the franchisor?

• Does the franchisor gain revenue from these purchases?  

• What is the extent of the franchisor's earnings? 

• What is the distribution process for products?  

• What is the timeframe for order fulfillment?  

• What additional initial or ongoing services does the franchisor provide? What are the associated costs?  

Inquire Before You Invest: Fifteen Questions To Ask A Current Franchisee

Before jumping into any franchise opportunity, just like any new business undertaking, comprehensive research is crucial. It’s essential to thoroughly examine the franchise brand’s offerings, evaluate the potential territory and location, analyze the local market, customer demographic, and competition, and review the organizational structure along with the training and support provided to franchisees.

A vital aspect of that research often includes visiting an operational franchise location, if feasible, and engaging in dialogue with at least one current franchisee, ideally more. No amount of online investigation can match the level of insight gained from discussing the franchise opportunity with those actively participating in it.

When reaching out to franchisees for these discussions, it’s beneficial to target a diverse group of business owners—those at different stages of their entrepreneurial journey. Additionally, having conversations with franchisees who share a similar background or are situated in comparable locations can yield invaluable insights based on their experiences.

Given the significance of this research phase, prepare a list of questions to ask before interacting with an existing franchisee. Below are fifteen fundamental questions you might want to incorporate in your "interview":

1. What was your personal and professional background prior to investing in the franchise?
2. When did you become part of the franchise and at what stage is your business now?
3. Did you evaluate other franchises before selecting this specific brand? If so, what factors swayed your decision?
4. What are your thoughts on the franchise’s product/service? What competitive advantages and obstacles do you perceive?
5. What initial training and support did you receive? Was any aspect of your training inadequate?
6. How does the ongoing support measure up? How easily can you contact the franchisor and main office if issues arise?
7. How challenging or effortless has it been to promote the franchise locally? What marketing assistance does the franchisor provide?
8. How long did it take until you started seeing a return on your investment?
9. Were there any unforeseen expenses?
10. What challenges have you encountered to date? How have you managed them, and what assistance has the franchisor offered?
11. What does your typical day/week entail?
12. What is your experience as part of the franchise network? Is there regular communication with other franchisees, and does the franchisor encourage this?
13. Has the franchise satisfied your expectations, both financially and otherwise?
14. If you could go back, would you alter any choices made in your business journey?
15. If you had the chance to start fresh, would you still choose this franchise or opt for a different one?

Every franchisee approaches the franchise opportunity with their unique aspirations and objectives. The questions above are not exhaustive, and it's crucial to understand that some franchisees might hesitate to discuss financial details. However, open dialogues with those who are already on the path you aspire to can offer significant insights into the brand and provide a glimpse of the journey ahead should you choose to embark on this path as a new franchise owner.

For more details about retail store franchise, feel free to reach out to us.