A successful franchise is one where both the franchisor and the franchisee see the arrangement as a good fit. The only way a franchisor can know this for sure is to ask candidates plenty of questions to ascertain if they would be right for the team.
This is an essential step in the process of buying a franchise and if the franchisor is not asking you questions and simply seems eager for you to sign a contract – beware.
A two-way interview helps provide a good base for achieving a profitable and successful long-term relationship and questions from the franchisor may also raise an important subject the franchisee candidate hadn’t even considered.
Knowing you have been properly ‘qualified’ as a franchisee should fill you with confidence too – because it means the franchisor has done their due diligence and believes you have the skills, the financial backing and the right attitude to build a successful franchise.
7 vital questions a prospective franchisor should ask you
There are a range of different questions a good franchisor will ask a potential franchisee. In addition to questions around when you would ideally like to open your franchise and what territories you’re looking at, here are some of the other important questions a franchisor should be asking and what they reveal about you:
What are you expecting from our franchise, what are your goals?
By understanding your aspirations, a franchisor can decide if you will be able to achieve what you want by working together, which sets the partnership up for success from the outset.
Have you been in business before? What skills do you bring to the table?
The franchisor needs to assess if you have the key skills required to build a franchise. Obviously, the franchisor gives you plenty of business support along the way, but they want to be sure you have core skills and a good attitude that will set you in good stead.
Do you have experience in franchising?
A franchise is a unique business model. If the franchisor knows you have worked in a franchise before, they will know that you understand the way they generally operate. If you haven’t, they know that it will be beneficial to spend some time delving into the subject with you further.
Why this industry?
Why did you specifically choose the industry you did – are you super passionate about it? Has it been a long-time dream? Franchisors value passion very highly as it’s a critical ingredient in the success of the franchise and can make all the difference between a mediocre business and one that thrives.
What sort of capital do you have?
Good franchisors will want to ensure you have enough financial backing to get the franchise up, running and profitable so they should ask you about your net worth and liquidity. If this question is skipped it should raise alarm bells and may mean they are more interested in your up-front franchise fee than your long-term success.
Will anyone assist you in operating the franchise?
When people buy a franchise, they often plan to run it with the help of a family member or friend, even if that person isn’t on the contract paperwork. A good franchisor will want to know as much as they can about the team that will be supporting you and what their skills are as well.
Have you already spoken to any of our franchisees?
If yes, do you have any comments regarding what they said? Contacting franchisees in the network is a great way to find out more about what it’s really like to launch and operate a particular franchise. It’s a great idea to do this before sitting down with the franchisor so that you can raise any resultant queries with them.
The moral of the story is, listen carefully. The questions the franchisor asks will reveal much about them, the culture of the organisation and how much they care.
Magdalena Schoeman is new business manager at The Belgravia Health & Fitness which includes Genesis Health + Fitness, Coaching Zone and Ninja Parc Indoor Obstacle Course.