There are plenty of franchise expositions, companies, websites, and franchise brokers to find a franchise opportunity. However, it is important to be critical when finding a right opportunity. So we will analyze how to gain more insights about asking the right questions and be prepared to understand the real picture of the company.
- FRANCHISE EXPOSITIONS: Every year two franchise expos take place in major cities. So going to a franchise exposition can be extremely helpful and knowledgeable. You have to prepare in advance to optimally utilize this opportunity. By asking right questions you can compare various franchise opportunities and investments. Some of the important questions to ask:
- What is the initial franchise fee and royalty fee?
- What additional start-up costs can you expect? What do other franchisees pay? Whether franchise fees depend on the area?
- How long has the franchisor been in business?
- When can a franchise expect to break-even? What is the break-even time of other locations?
- What is the return on investment?
- Does the franchisor have adequate staff, resources and trained personnel to meet its commitment to you?
- Does the franchisor have an active research and development department that introduces new products and services?
- How many new products they introduced last year and what was the response in sales?
- How many franchised outlets exist? Where are they?
- What management, technical, and other support does the franchisor offer?
- What controls does the franchisor impose?
- Has the franchise been growing? Are new locations being added on a regular basis? How many locations closed in the last year? Why did they close?
- Do franchise managers provide help and guidance and how much time they spend with franchise per week?
During the expo, you can also schedule personal appointments or meet-up with Franchisor to know more about the opportunity. You have to manage your time effectively to meet all franchisors based on your needs and be able to say no to the irrelevant opportunities. These expos give plenty of information that is not available on websites.
Franchise brokers or advisors can help analyze and decide to select a franchise. Advisors can provide options based on your needs and as there are so many franchise opportunities, it is very tough to select the right ones. Moreover, among so many opportunities one needs an external voice to tailor opportunity according to your needs.However, sometimes you have to be careful as a broker may not be acting in your best interest.
Finally, it is a lengthy, complicated, and time-consuming process but will reap amazing results if done appropriately with perseverance. You will also be able to buy a franchise business opportunity that suits your needs.