Owners Operator Manual
Owners Operator Manual
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Franchise Owner To Be? 18 Questions To Ask Current Franchisees
Okay, so you’ve been investigating a franchise opportunity that has you both eager and excited at the prospect of becoming an entrepreneur. Your franchise consultant has discussed the business in depth with you, including your role as a franchisee, the financial requirements, skill set needed, and you’ve been introduced to the franchisor. You have received a copy of the UFOC, which you have carefully investigated with an advisor. Your family is behind you 100%. So far, everything looks great! What’s next?
A very crucial next step in the process of selecting the right franchise is to call some current franchisees. The franchisor will openly provide you with a list of franchisees, and it should be a diverse list, meaning, for example, that your list will consist of 5 of the franchisors top producers in sales, 5 average producers, and 5 bottom producers. Keep in mind that there are many factors and variables for the answers you receive. For example, if a franchisee is currently on the lower end in terms of sales for that franchise, it could very well be that way because the franchisee just opened their location a month ago.
This list is extremely valuable to you, the potential franchisee, as you are able to solicit answers to key questions from franchisees that are currently conducting business in the franchise you are considering. Usually, you’ll receive the most “raw”, honest, un-edited feedback from franchisees, which is invaluable in assisting you in your decision making process.
That being said, lets review some key questions that a potential franchisee should ask a current franchisee.
1. How long have you owned your franchise?
2. Is your franchise profitable?
3. How long did it take to reach your cash flow breakeven point?
4. Were opening costs consistent with the original projections?
5. What was your background prior to buying your franchise?
6. Are you satisfied with the franchisor's support?
7. Are you satisfied with the product or service?
8. Is the operations manual clear, up-to-date and adequate?
9. Are you satisfied with the marketing and promotional assistance given?
10. Was the initial training and ongoing support sufficient?
11. Is the franchisor fair and friendly to work with?
12. Does the franchisor listen and help you with your concerns?
13. Have any franchisees had disputes with the franchisor?
14. If so, what was their nature? Were they resolved fairly?
15. Do you know of any disputes with competitors?
16. Who are the major competitors?
17. What is the company's biggest competitive advantage?
18. What is the company's biggest competitive disadvantage?
Satisfactory answers to the above set of questions may very well put you on the road to franchising with a company that is not only in line with your values, but will also enable you to attain the lifestyle you’ve dreamed of for you and your family.
About the Author
Cory Barber is a professional franchise consultant affiliated with the world's top franchise broker network. His free, confidential consulting services help guide you through the entire process of purchasing a franchise based on your background, skillset, lifestyle, and financial goals. For more information about his free Franchise Consulting Service contact Cory at his office: 877-271-4305.