Five Questions to Ask Before Buying a Franchise

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Buying a franchise is like applying for a job. The franchisor will interview you to determine if you have the capabilities and qualifications to run their business. They need to know that you will be committed to the brand and what it stands for. It can be harder than landing a job you want. Franchisors, especially the bigger ones, are protective of the brands they have developed.

When you meet the franchisor of a good commercial cleaning business opportunity, for example, it is also your chance to determine if this is the right business for you. The meeting should give you information about the franchise fee and other expenses. You should also determine the kind of support you can receive from the franchisor. These are important indicators of whether you should go through with the franchise.

Will the Franchisor Help Me Find a Location?

The franchisor understands the best areas where their business can target the right market. Are they going to help you find a good location, or will you be left on your own? Will they have to approve the location? The franchisor should also assist you in terms of negotiating the lease contract. They should guide you in how much you should pay for rent and other utilities.

Do They Have Training Modules?

How are they going to train your employees? Are they going to hire your crew, or will you be the one to decide on that? You should want to know about the nitty-bitty of the operation, too. If you have to fry burgers, then so be it. The quality of a good businessman is knowing the ins and outs of the business—even the dirtiest, messiest one like cleaning the toilet and the kitchen.

Can They Provide Financial Assistance?

The franchisor should guide you in getting a loan. They can at least recommend you for a small business loan. Aside from the franchise fee, you will also spend on opening promotions, marketing materials, business licenses, taxes, equipment, and insurance. You’ll also need to retain an accountant and possibly a lawyer for legal help in the future.

How Will They Resolve Disagreements?

There is no perfect relationship. Franchisors don’t want to argue with franchisees and vice versa. But disagreements are bound to happen in any partnership. How will these disagreements be resolved? There should be open communication between you. The franchisor needs to assure you that they can be reached anytime for all kinds of issues in the business. Communicating well is a surefire way to resolve any conflicts.

Can I Use Their Marketing Strategies?

Most franchisors already have a sound marketing strategy in place. That’s why they grew as much as they did. Now that you’re interested in franchising the business, are they going to allow you to tap into their marketing resources? Will you have the option of using their marketing team? Although this is not a deal-breaker, a proven marketing strategy will help you get off to a good start.

A franchise is the best start for first-time entrepreneurs. Since all you have to do is to follow the business formula so that the products will be supplied to you, it is easier to succeed in this type of business. But since you’re a beginner, you may also fall into traps. You must make sure that your rights are well-protected and that you will receive the support you need.

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