You’re likely eager to jump right into your franchise business, but several important questions should be taken into consideration before doing so. Spend time sitting down with the franchisor (or a handful of franchisors if you’re debating which franchise to open) and franchisees who have experience with the specific restaurant you’re looking to open.
Questions for the Franchisor
- How much total investment will the franchise require upfront?
- What financing options are available?
- What are the rules/requirements of opening this franchise?
- How much does it cost to maintain the franchise once it’s up and running? (monthly/annually)
- What are the average franchisee profit margins across the franchise?
- What is the average success rate of franchises in this chain/location, etc?
- How many franchise locations does the average franchisee open?
- How many employees will I need to hire to support my business?
- Who do I reach out to if I have a question about my franchise?
Questions for the Franchisees
- What are the pros and cons of working with the franchisor?
- What does the franchisor do to support you after they’ve awarded you their franchise?
- What did you take into consideration when deciding location(s) for your franchise?
- What location factors contribute to the success of your franchise?
- How long did it take your franchise to break even?
- What training will be required to get employees up to speed?
- What does the day-to-day look like for a franchise owner?