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- How
experienced is the Franchisor? What is the track record of
the franchise? Is there steady growth?
- Is the
Franchisor financially sound? Can you check from recent
accounts? Can your accountant talk to his?
- Is the
deposit paid to the Franchisor fully refundable?
- Does the
Franchisor have enough experience within the organisation to
provide ongoing support?
- Is there
sufficient advertising? Does the Franchisor
contribute?
- Is training
provided - initially and later? Who pays? How much is
there?
- Is there a
uniform performance monitoring system? What are the
arrangements for providing field support?
- How many
outlets are there? How many are company-owned?
- What are the
development plans for the next five years?
- How are
franchise owners selected?
- How many
failures have there been? What are the details? These
should be listed in the Disclosure Document,
Contact
existing franchise owners of your choice. Ask:-
1. How did
actual cost of investment compare with the cost proposed?
2. How accurate were profit/loss cashflow estimates?
3. How good was initial and subsequent support?
4. What is the Franchisor like to work with? Accessible?
Fair? Organised? Responsive?
5. How good are the rest of the Franchisees? Do they make a
good team?
6. Is the Franchisor a good leader?
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