The Franchising Process - Part II

Here’s The Franchising Process - Part I.

HowStuffWorks.com:

3. Visit as many of the franchisor’s existing franchisees as you can. Meet directly with the owner of each establishment, and pay close attention to opinions of the franchisor. Ask the owners about the support they get on an ongoing basis, as well as the training and assistance they received when they 1st purchased the franchise.

Did the franchisor help them with the location decision, and assist with initial set-up? What about the promotional efforts of the franchisor? Does the individual franchisees benefit from their investment? Do they get any say in how the advertising dollars are spent or allocated? Are their earnings living up to their expectations? Did their total investment stay in line with what they were expecting?

Ask specifically if they would do it again knowing what they know now. These opinions are very important to your research into each franchise. Look for trends that might indicate overall dissatisfaction with the company - and avoid those like the plague!

4. Review the franchisor’s business plan, operations manuals, and market analysis. Try to meet with the franchisor in person. Make a point to meet the franchising operations personnel with whom you will be dealing. Keep these questions in mind while you are meeting with them:

* Is the information you are given clear?
* Does the training program appear to be thorough?
* Does it match what you were told by their existing franchisees?
* Does the market look strong?
* Are there too many existing franchised locations in your area? If the area is already saturated, you may need to look elsewhere (either in location or business).
* Are there no locations in your area? This may not necessarily be a good thing either. It may mean that the competition has a strong hold on that regional market and you’ll have a difficult time getting a share of it.

Take careful notes about each franchise opportunity you are investigating. Make sure you understand all of their policies and have a good feel for the level of satisfaction their existing franchisees have. Then use this information to make your final decision.