6 Questions You Should Ask Your Franchise Broker that aren't related to ROI
Apr 02, 2020 05:59 pm | Franchising
1. What're the sales of your best-performing branch and your worst-performing branch? Where are they located?
This allows you to get a grasp of the franchise brand’s successes and failures through proof and numbers.
2. What's your franchise renewal fee and can you guarantee that this won't increase?
Franchise fees may be subject to increases that you may not be prepared to cover. It’s best to clarify these with the brand prior to signing your contract.
3. Approximately how much will I have to prepare to spend within the next 2 years (including rent, inventory, salaries, utilities) before I get my return on investment?
The Turnkey often does not include operations costs. Some brands also require you to pay for these things ahead, along with the turnkey, prior to franchising. It’s important to know approximately how much money you have to shell out aside from the turnkey.
4. Who will train the employees?
The franchise brand regularly gives support such as a training book or list of guidelines. However, it’s important to ask if the franchise brand will handle in-person training beyond the handbook.
5. Do you offer support beyond the initial training or after opening?
Most brands offer pre-opening support, but does the brand offer assistance beyond opening? Make sure you’re aware of how much support you’re getting from the brand and how long this’ll last.
6. Do you offer marketing support? How much do you spend on marketing per franchise and how long will this support last?
Marketing is essential for the public to know that your franchise exists. Part of the support of the franchise brand should be to let their large audience know of your franchise branch.