Item 2 - BUSINESS EXPERIENCE
In Item 2, you can review the experience of the franchise founder and management team, as well as the operational history of the business. This Item outlines the business experience of key franchisor individuals, including directors and principal officers, for the last five years.
- Get to know the franchise leadership. As a franchisee, you'll need to rely on members of the executive and management teams for system leadership. Having a well-qualified leadership team is important, especially for an emerging brand. This means that each member of key franchisor staff must have the specific business skills and experience required to fulfill their respective roles.
- Who is on the executive team? How long have they been with the company?
- Do the company executives have the necessary experience?
- For example, do they have ample experience operating this business or a similar business, such that they're qualified to teach, train, and advise you on the operation of the franchise?
- o A shorter tenure within the company is acceptable, if the individual's prior experience is directly relevant to the franchises being offered for sale.
- Are there enough executives to support you as a franchisee?