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Determining How Franchisors Treat Their Franchisees Find out by getting the franchisor to answer these five simple questions.

By Andrew A. Caffey

entrepreneur daily

Opinions expressed by Entrepreneur contributors are their own.

How do you gauge what the franchisor/franchisee relationship is like within the system you're interested in? Can you predict whether the franchisor will respect your voice as a franchisee...or disregard you completely? While franchise relationships may be difficult to decipher, there are a few objective factors that could provide clues. Here are some questions you must ask a franchisor-and have them answer-before buying into their system:

  • Is the market for the product or service of the franchise program strong, or is it declining?
  • Is there an independent franchisee association in the system?
  • How does the franchisor handle competition issues between its franchisees?
  • What were the typical store sales last year, and what is the range of sales?
  • What process has the company put in place for the governance of the system? Do franchisees have a say in the development of new products or services?

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