As part of a franchise candidate’s due diligence process, it should be expected that certain questions will be directed to franchisor staff. Although many of the questions will be of the typical and usual variety, there can be certain questions that require a careful and detailed response. If a franchise candidate doesn’t receive the answer they expect, it will reflect poorly on the franchisor representative or franchise broker who is representing the franchisor. The better prepared a franchisor representative is to answer certain questions the right way, the better the impression the candidate has.
Because franchise prospects can obtain information from the Internet and other sources, it should be expected that their knowledge base regarding various franchise opportunities will be high. Franchisors should anticipate that prospective franchisees are aware of competitive franchise opportunities to include key details regarding their franchise offering. When one considers the current demand and competition for qualified franchise candidates it becomes critical that a question raised by a candidate receives the right response. Top performing franchises are in the position of being able to respond to questions that can arise from time to time. Answers should not be confusing and the franchisor representative must not be in a position of being able to respond, without always deferring to someone else.
Franchisee candidates can raise a question that can catch the franchisor staff off-guard. The more prepared staff is to answer unique or unusual questions the better the outcome for holding on to a qualified franchise candidate.
60% of franchisors provide a financial performance representation (“FPR”) under Item 19 in their Franchise Disclosure Document.
It was quickly apparent that some employees struggled working from home. They had never experienced the challenges associated with time management.
Before a prospective franchisee invests they must review the information disclosed in the Franchise Disclosure Documents.
When franchisors strategize their system growth, the major focus is placed on the amount and quality of their franchisee leads.
A good consumer experience is not a reason to invest in a franchise. It skews the decision-making process of a prospective franchisee from start to finish.