Every single question that you need to ask current and former franchisees of the franchise businesses you’re looking at are on pages 184-185 of this book. All of them.
I’ve even included a few that you may not want to ask. (Those are the ones that you have to ask.)
I’m actually doing a series of blog posts about the Top 40 Questions To Ask Franchisees.
The first couple of times you get on the phone with franchisees will be a little uncomfortable. That’s because you’re about to get down and dirty, you’re going to be asking them some very personal questions. Some of the questions you ask will be about money; their money. So, fasten your seat belt.
Getting the answers to your questions probably won’t be as difficult as you think, though. That’s because I’ll be your guide; we’ll walk through it together. And, you’ll be amazed how open franchisees are to answering your questions. Knowing how to ask them is the key, here.
If you happen to be pretty far along in your franchise due diligence, and you’re getting a little nervous about asking current franchisees questions that have to do with how much they’re really making as owners, here’s one of my most popular franchise articles concerning how much you’llmake as a franchise owner. It will help you, tremendously.
“Do you feel that you’ve received all the tools you need to handle the day-to-day operations?”
This is an important one, people. When a franchise development representative tells you (during the sales process) that “Our tools and systems are top-notch, and they’ll help you run your new business efficiently,” you don’t have to believe him. (Or her.) I’m not suggesting that your rep is being untruthful; it’s just that part of your research needs to include finding out if the facts that you’ve been given, check out. And talking to current franchisees can help you make that determination. So ask.
What you want to know is this
Will the money you’re about to invest in a franchise system pay off? Part of the attraction of franchising is the fact that lots of things that you’re going to need to run a profitable business are included in the franchise package. Tools can mean a lot of things. For example, payroll software is a tool that’s hopefully provided by the franchisor. (If you invest in a franchise that requires employees.)
Inventory management systems, CRM’s, and even social media marketing software are just some of the things that you may have at your disposal as a franchisee.
Find out ahead of time what you’ll receive as the owner of the franchise you’re interested in. Don’t assume.
You’ll be happy that you asked great questions, when it comes time to write The Check.
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"I was pretty focused on a particular franchise opportunity when I reached out to Joel Libava. In the course of a 1-hour conversation, Joel was able to ask questions and provide direct advice to help clarify the process for me and help guide me through the next steps in my vetting process. He even put me in contact with other professionals who were able to help educate me further in my particular industry. The time and money were well spent."
-Brian Grayson, Cincinnati