Feel More Confident: Four Franchise Questions You Must Ask
One of the best resources you have during a franchise search is the existing franchisees. They know the business, have firsthand experience with the franchiser, and can provide valuable insight. The feedback from existing franchisees can help you decide whether or not you want to buy into that franchise.
Franchisees are often busy, so you have to make the most of your time with them. Here are four questions you should make a point of asking existing franchisees because the answers are significant.
“Would you buy this franchise again?”
While a “Yes” or “No” question isn’t usually preferable, you need to know whether the franchisee would make the same decision and buy the franchise again with all the knowledge they have as owners now. If you’re getting “No” in response most of the time, you need to look into other opportunities. Be sure to ask “Why?” whether the franchisee replies positively or negatively. Their justification for or against the franchise can reveal very interesting things about the company.
“Are you just as satisfied now as you were when you started?”
Generally speaking, if you’re looking at franchises, you’re already dissatisfied in your current work life, so satisfaction is important here. Follow up with “What is keeping you satisfied, and why?” if the franchisee says “Yes.” With franchisees who say “No,” ask what the franchiser could do to increase his or her satisfaction.
“How did the top franchisees reach their level of success?”
This question is more open-ended, but the answers can reveal facts about the business you wouldn’t get otherwise. For example, if a franchisee tells you it’s because of their locations, then you will know that location is a huge factor in this particular business.
“How much money can I expect to earn?”
Be open, but don’t push too much here; some franchisees might be uncomfortable talking about money too quickly. Be sure to mention that you’re asking about reasonable earnings over the first five years if you follow the system and take advantage of whatever the franchiser recommends.
As you’re talking with the franchisees, feel free to ask other questions that will give you the answers you need during your search. To make finding a franchise easier, check out BetheBoss.ca for listings in your area and industry that are compatible with your investment level.