Obtaining a new type of business is both exciting and nerve-wracking. There are a couple of things that you have to remember, especially if this is your first time managing and owning a business.
Today, we will discuss the most common questions that you have to ask as a franchisee. There are definitely a lot more that you should ask than just “Must I invest in a lawn service franchise?”
What’s Your Financial Information?
You have all the right to ask about the company’s financial information as a franchisee. You definitely want to be sure that the business that you plan to buy or already own is a profitable one because if not, then you should go and find another one instead.
However, there might be pieces of financial information that your franchisor can keep from you. They should be able to disclose some of the most important things, such as costs, sales, and expenses, though. If they tell you that they can’t, then ask why.
Is My Location a Good One?
Your franchisor should help you with conducting a market study for the location that you want. They should also have a couple of location suggestions for you to choose from, as they most likely have done some researching themselves in the past.
While you’re at it, you should also ask them why you should invest in their business and what they think are their weaknesses and strengths. Ask how they deal with the challenges that they face and how they can help you in the future.
What Type of Support Can You Provide?
Franchisors and their team should be able to offer you some type of support when it comes to site selection and construction. They can give you different advice about such things, but you should ask them how will they be able to help you.
While the support usually comes for free, some franchisors might charge you for it. Before accepting any type of help, it will be wise to ask if it is free or if you have to pay an additional fee for it.
How Do You Resolve Problems and Disputes?
You will most likely experience some type of problem with the franchise in the future, and you should be able to ask help from the franchisor and their team. Ask them how they have dealt with disputes in the past and how they were able to resolve it.
You should also ask them if they have a process when it comes to resolving problems so that you can learn it step by step. Ask them how they communicate with their franchisees and if there is a number that you can easily reach if you need to contact them.
Always communicate with your franchisor before buying a franchise from them. You never want to buy a franchise and then be surprised by additional fees and more. Know what the business model is all about and what it entails, especially when it comes to the financial and legal aspects.