Meeting a franchisor is a 2-way interview. You want to know more, but they're also assessing you and whether you fit with their model. First impressions DO matter, on both sides so dress for success and have some great questions ready for them. Here are a few to start you out:
- 1. What sets you apart from your competitors, and what will keep the brand competitive in the next 5-10 years?
- What does the initial and ongoing training program include, and what other ways that you support franchisees in their first year of operations?
- How do you help franchisees generate customers and brand recognition?
- What are the main challenges franchisees face, and how does your system help overcome them?
- What technology do you provide to help run the business efficiently?
- 6. What is the initial investment and what additional costs should I expect?
- Can you share average sales, profit margins, and financial performance?
- How do you determine and protect territories for your franchisees?
- What support do you offer if a franchisee struggles to meet performance standards?
- What exit strategies are in place for franchisees who sell or leave the system?
While your financial situation is an important factor, the franchisor should first look for your true interest in the business, your background, and a strong drive to make it successful.
You should be focused on how the brand fits your lifestyle and values, and the kind of support that they will give you for the best chance of success. IF it seems like a fit, then you can get into the 'nitty-gritty' of numbers.
*** Don't lead with 'what is the ROI'. This will instantly put off a franchisor. They don't know anything about you, your abilities, or what your market area would be, so they can't accurately estimate ROI for you yet. More importantly, they want to know if you're a fit and have passion for the business. Are you excited about the brand? Do you have common values? Are you driven, and can you follow their playbook? If they think you are only focused on the profit but not the brand itself, it will push them away.
Check other BeTheBoss.ca blogs and articles for more information on meeting a franchisor.