Franchisors often hold “Discovery Day” events in person and online so that potential franchisees can get to know more about them – and vice-versa. While many potential franchisees are concerned with impressing a franchisor, it’s important to use this opportunity to ask necessary questions to determine whether it’s a good fit for you, your interests and skills and your business goals.
An official with one restaurant franchisor says, “I always tell candidates that it’s important for them to feel comfortable with us and vice versa—because this is like (entering into) a 10-year marriage at the minimum.”
What kinds of things should you ask?
It’s smart to do some research on any franchise you’re interested in so that you can ask specific questions regarding their business – and show that you’ve taken the time to do your homework. These include inquiries like:
- What are the main reasons for your success?
- How do you differentiate yourselves from your competitors?
- What are some keys to your success?
- What are the company’s biggest challenges?
- What are you looking for as you consider new franchisees?
- What kind of support do you offer your new franchisees?
- To what do you credit your high customer approval rating (or what are you doing to improve your rating)?
- What kind of feedback have you gotten from customers that you’ve incorporated into your business model?
Remember that “Discovery Day” is just that. It’s a chance for franchisors and potential franchisees to get to meet and learn a little about each other. Don’t let a franchisor try to pressure you to sign a franchise agreement then and there.
As with any contract, it’s crucial to review it thoroughly and look for areas where negotiation may be possible. At Zarco Einhorn Salkowski, P.A., we offer free consultations to help new franchisees maneuver this unique and challenging business landscape.