Questions to ask Franchisor

  1. How long have you owned your franchise?

  2. What was your background prior to buying your franchise? Is your franchise profitable?

  3. How long did it take to reach your cash flow breakeven point?

  4. Were your opening costs consistent with the original projections in the disclosure document?

  5. Are you satisfied with the franchisor's support?

  6. Are you satisfied with the product or service?

  7. Is the operations manual clear, up-to-date and adequate?

  8. Are you satisfied with the marketing and promotional assistance provided by the franchisor?

  9. Was the initial training and ongoing support sufficient for you to operate your business?

  10. Is the franchisor fair and friendly to work with?

  11. Does the franchisor listen and help you with your concerns?

  12. Have any franchisees had disputes with the franchisor? What was their nature? Were they resolved fairly?

  13. Do you know of any disputes between the franchisor and the government?

  14. Do you know of any disputes with competitors?

  15. Who are the major competitors?

  16. What is the company's biggest competitive advantage? What is the company's biggest competitive disadvantage?

 

 

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