Questions To Ask A Franchisor

1.  What assistance does the franchisor provide? Do they assist with training, store design, construction and site selection?  In other words just how “turn-key” is it. 

2.  Do they have access to demographic data to get an understanding of the audience within the market area?

3.  What types of support will the franchisor provide once your franchise has opened its doors?
     After the initial investment, how much working capital will be required?

4.  Does the franchisor offer any form of financing?  

5.  Ask the franchisor how many franchises have been sold in the state you will be operating in during the last 12 months, and how many have been opened for business?

6.  What types of territorial restrictions and protections have been set up by the franchisor?

 7.  Is the franchisor planning on expanding within your state? Are they focusing on any specific      locations?

 8.  Ask if the franchisor has been forced to terminate any of its franchisees and if so, can they detail the reasons for this decision. How many franchisees have failed?

 9.  Are there any current lawsuits pending or past judgments against the franchisor?

 10.  What steps are taken to settle disputes between the franchisor and franchisees?