Information Please

Q&A

So you think you've found the right franchise for you? Ask these 24 questions. If the answers aren't satisfactory, chances are there's not much opportunity there.

The Franchise Organization

  • Does the franchisor have a good track record?
  • Do the principals of the franchise have industry expertise?
  • How strong is the franchisor's financial condition?
  • How thoroughly does the franchisor screen franchisees?
  • How profitable is the franchisor and its franchisees?

The Product Or Service

  • Is there demand for the product or service?
  • Are industry sales strong?
  • How does it compare to competing products or services?
  • Is the product or service competitively priced?
  • What is the potential for industry growth?

The Market Area

  • Are exclusive territories offered?
  • Does the territory you're considering have sales potential?
  • Is the competition strong in this area?
  • How successful are franchises near this area?

The Contract

  • Are the fees and royalties reasonable?
  • How attractive are the renewal, termination and transfer conditions?
  • If the franchisor requires you to purchase proprietary inventory, how useful is it?
  • If the franchisor requires you to meet annual sales quotas, are they reasonable?

Franchisor Support

  • Does the franchisor help with site selection, lease negotiations and store layout?
  • Does the franchisor provide ongoing training?
  • Does the franchisor provide financing?
  • Does the franchisor sponsor an advertising fund to which franchisees contribute?
  • How strong are the franchisor's promotional programs?
  • Does the franchisor have favorable national contracts for goods and services?

Reprinted from Start Your Own Business: The Only Start-Up Book You'll Ever Need, by Rieva Lesonsky and the staff of Entrepreneur magazine (Entrepreneur Media Inc.). To order a copy, visit your bookstore or www.entrepreneurmag.com.

« Previous 1 2 3 4 5 6 Page 7 8 9 Next »
Loading the player ...

5 Secrets for Making Your Logo Stand Out

Ads by Google

Share Your Thoughts