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Franchise discovery day: Five key questions to ask before investing

On Behalf of | Sep 6, 2023 | Franchise Law |

As an entrepreneur, your goal is to invest in a business that will yield a profitable return. So, if you receive an invitation to attend a franchise discovery day, it’s an opportunity you will want to take advantage of, especially if you know this business will help your financial growth. At a franchise discovery day, you will meet the franchisor and get to ask them questions to help you decide whether you want to invest or not.

To assess if it is a perfect fit for you, this is your chance to ask well-informed questions that will reveal the franchise’s essence, the potential for profitability and, most importantly, its owner’s values.

Asking the right questions

Most often, entrepreneurs like you do not have just one business they want to invest in. They often have a narrowed-down list of franchises that might bring a considerable return on investment (ROI). If one of those businesses invites you to their discovery day, you must ensure you leave with all the information you need to make an informed decision. However, you may only figure this out after asking the right questions, including:

  • What are the biggest differences between you and your competitors?
  • In what ways will you support me in growing the business?
  • What is your relationship like with your franchisees?
  • How long until the business becomes profitable?
  • Have you ever ended a franchise agreement? If so, what led to the termination?

Asking targeted questions like these can help you evaluate the franchise more thoroughly. Further, it enables you to decide whether it is a suitable or risky investment.

About the franchise’s potential ROI

Franchisors hold discovery days shortly after sending their franchise disclosure document. A day like this helps you better understand whether a franchise aligns with your values as an entrepreneur. With this information, you can invest in the franchise and grow your money. Or, if you prefer, you can search for a different business that better suits your needs. To get started, contact Zarco Einhorn Salkowski, P.A., and book your free consultation.