Looking To Buy A Franchise? Here Are 3 Must-Ask Questions To Help Lower Your Risk

{Picture courtesy of Einstein Bros. Bagel Franchise. Kidding}

Questions on franchising? Are you looking at franchises for sale?

Buying a franchise in Cleveland, Atlanta, Portland, or Schenectady? Anywhere in the world?

My experience tells me that prospective franchise owners generally don't know all the questions that must be asked before taking the serious, but exciting step towards franchise ownership.

This is not meant to be a slam on these courageous people. It is more of  a "If you don't know, you don't know" type of thing. 

Here's an example...

Most people that I coach through the franchise process think that in order to be financially successful as a franchise owner, they need to invest a ton of money. In every case except one, this is a fallacy.

The one case.

So, if you don't know, you don't know. That's ok, if you are willing to learn how to know.

Here are three questions that you must ask current franchise owners of the franchise offerings you are exploring. {Please pass this article around. Let's save some folks future grief}

1. If you could start all over, would you buy this franchise again? In other words, ask the franchisees if they knew then what they know now, would they choose the franchise that they currently own, or would they have chosen something else. This question will give you a good feel for the franchise concept as a whole.
2. Do you feel that the franchise you own has the potential to become a fad? Caution; This question may cause the franchisee to start sweating a little, but after he or she recovers from it, the answer should cause you to not sweat. At all. 
3. How is their technology? Do they charge you for major software upgrades? {Actually, a better question may be do they even have software upgrades?} Kidding. Franchisors today should be tech savvy. They should have an in-house techie or two, and have the ability to jump into the latest trends, rapidly. Like this one.

Now, there are certainly more than three questions that you should be asking. I felt that these three are often overlooked.

Ok, I'll give you another Free Tip. In detail.

Over and out.

                        

Comments

[David Sedbrook]

I also need to ask existing franchisees how their support is from the franchisor? The number one complaint we have at illuminate gym about other franchises was that the support wasn't very good. Continued support is key to successs and makes those continued royalties make a little more sense to a franchisee.