Key Questions to Ask Franchisors When Considering a Franchise
- businessincanberra
- Oct 22, 2024
- 1 min read
When considering a franchise, asking the right questions is essential to make an informed decision. Start by understanding the initial and ongoing costs, including franchise fees, royalties, and marketing contributions. Ask about the franchisor’s support in areas like training, site selection, and marketing strategies to gauge how well they assist new franchisees. Inquire about the performance of existing franchises, including profit margins and typical timeframes to reach profitability. Understanding the franchisor's growth plans and how they handle competition in the market is also crucial. Don’t forget to ask about contract terms, renewal policies, and what happens if you want to exit the agreement. Additionally, clarify any restrictions on suppliers and the flexibility you’ll have in running the business. Asking these key questions will help you assess if the franchise aligns with your goals and offers long-term success.
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