Are you interested in investing into a franchise?
Part of your due diligence and research process should be to connect with as many Franchisees in the brand as possible. Try and visit as many locations as possible, call numerous Franchisees, email those Franchisees you cannot call, look Franchisees up on LinkedIn, Twitter and Facebook. Make every effort to ask Franchisees questions, as they are the best source of information.
There are multiple questions to ask Franchisees:
And many more.
But, the number one question to ask every existing Franchisee is:
“Would you recommend this franchise investment to a family member or friend?”
Why this question? A Franchisee may be willing to invest again as they’ve been through it, and know what to expect.
But, would they subject their family or friends to the same experience? If you want a very honest answer from a Franchisee on how they feel about the franchise system, that’s the question to ask.
When it comes to franchising, Murphy’s Law comes into play more often than desired. In many cases, a new franchise takes off slower than anticipated.
Before a prospective franchisee invests they must review the information disclosed in the Franchise Disclosure Documents.
The most immediate consideration is usually how much is the franchise fee and other ongoing payments like royalty and advertising fees.
In the franchise industry, franchisors can view comparisons and relationships between consumer satisfaction for the products or services a franchise offers.
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.