From finances to legal documentation, there's a lot that goes into the preliminary stages of buying a franchise. When you make the decision to become a franchisee, you're opening yourself up to leadership, to innovation, and to the optimistic pursuit of financial success.
But going hand in hand with success, comes a true dedication - a dedication to a trademark, to the franchisor, and to the quality of the parent business itself.
Whether you've been dreaming of buying a franchise for years or you've only just begun to consider the exciting opportunity, making that final decision is a big one. To help you know how (and when) to make the right one, take a look at our list of the top three important questions you need to ask before buying a franchise.
How much is the upfront fee?
Franchises are an investment whether you're expanding one or buying one. And though you can stand to profit from great financial success, it's important to understand the initial risk and investment from the very beginning. To make an educated assessment, ask the questions: how much will it cost to license the business? What fees should I plan on? And how immediate are the out-of-pocket costs?
What is biggest challenge you face in owning this type of franchise?
While you shouldn't expect a case-by-case account of every difficulty faced within the industry you're thinking of buying into, the franchisor should be able to give you a clear and succinct answer to this question. His or her response will tell you what to look out for, where the potential lies, and whether he or she is well-informed and appropriately in touch with the industry.
How do you support your franchisees?
This is an integral one. Though when you buy a franchise, you're bringing with you your past business experiences, your creativity, and your personal manner of leadership, support from the business owner or parent company is crucial. Ensure that the franchisor believes in open lines of communication and in providing accessible, necessary, and comfortable resources - from training manuals to management approaches.