Every franchisor will promise you the chance to grow and sustain a profitable business. But only by asking questions about key areas of the business, and what they offer franchisees, can you know whether it’s for you.
What is required from you financially?
Once you’ve established how much you’re able to invest, look at how that stacks up against the franchisee’s requirements. You need to know what the initial investment is, how much you have to invest on an ongoing basis, and what the service charge is.
Since banks see the high success rates in franchise businesses, they tend to view franchisees favourably. It’s another thing that confirms your decision to go into franchising.
How well-established is the business?
Knowing how long the business has been running will give you an idea of the model you would be buying into. It’s just as important to know how long they have been franchising for, so that you have an idea of how good the support they offer franchisees is.
How many franchise offices are there?
Asking about the number of franchisees will tell you how strong the peer network is, and how many fellow franchisees are there to support you in your business journey. They should give you the chance to speak to existing franchisees. This is your chance to learn from those walking the path that you would be taking.
How transparent are they?
Don’t be afraid to ask the franchisor about their weaknesses. A good thing to ask about is their biggest failure and how they overcame it. This won’t only tell you how open they are, but also how they dealt with that failure.
What are the steps for a franchisee?
Once you’ve made the decision to invest, you’ll want to know what they offer franchisees and when. What does the onboarding process involve? What initial training do they offer? Is there another ‘check-in’ session that gives franchisees more support after a certain length of time?
When you’re more established, what support does the franchisor offer to ensure that your business grows?
What are the franchisor’s future plans?
Don’t forget that the franchisor is a business itself and will also be looking to expand both their products and services. Get an understanding of what their strategy is. Perhaps they’re looking to build on the services that you as their franchisee can provide? Or maybe they’re moving into new markets? A franchisor that is clearly strengthening itself in the market is a great choice for an investment.
A franchisor could provide you with a great deal of information. But only by having a full discussion with them, where you uncover how the business works and what they offer franchisees, can you truly know if they’re right for you.
Get an understanding of how they plan to invest back into the business. Do they intend to strengthen resources at the head office? Are there plans to build on the team supporting you?
They will be helping shape your business for you, so it’s incredibly important to know that you can buy into their vision. Ensure that you’re in safe hands before signing on the dotted line.
This article comes courtesy Home Instead UK, the country’s number one home care company, which provides a range of care in people’s homes, including complex and specialist care such as dementia care through a network of 255 franchises across the UK. The company has more CQC Outstanding ratings than any other home care franchise and has received many awards and accolades for care and franchising including the BFA, (British Franchise Association) Leadership & Culture award in 2023.
