Franchisor Interview Questionnaire & Checklist
This handy guide from RetailFranchise can accompany you on visits to franchisors to make sure you have the key topics of discussion covered, or as an aid for discussion by telephone or skype. This is not an exhaustive list, and some questions will be more relevant than others depending on the franchise and the industry. So do not rely wholly on this document, ask all questions that come to mind.
- Who are the Directors of the business?
- What are the Directors backgrounds?
- How many franchises are in operation and how long has the franchise model been established?
- Are they members of the British Franchise Association? If not, why not? (doesnt mean its an issue)
- How many franchisees have been unsuccessful, and why were they unsuccessful?
- Can you be provided with Company Accounts and a Franchise Agreement to inspect?
- If you are meeting at the Franchise ‘Head Office’, can you have a tour to meet the key personnel and learn what each of their roles are?
- What exactly would you be doing as the franchisee?
- How much time, typically, is spent doing what activities?
- Who is the target market for the services?
- How big is the target market?
- Who are the competitors (both franchised and non-franchised)?
- How is this company different and better than its competitors?
- What are possible short and long term threats to the business?
- How ‘future-proof’ are the services offered and the industry that it operates within?
The Franchise Opportunity
- What territories are available, or if non-geographic territory system exists, what is the market available to you?
- How do franchisees co-exist, and how do they support each other or work together?
- What initial training is provided and how is it structured?
- How long does the training last, how many of the days are ‘classroom’?
- What support is available on an ongoing basis?
- What ongoing training is available?
- What are the marketing methods used to gain clients?
- How will the franchisor help you to develop clients?
Building a Successful Franchise
- What is the profitability of a typical franchise?
- How accurately can income projections be forecast?
- What factors will influence the amount and timing of income from clients?
- How quickly is cash flow established?
- What Business Planning information will the franchisor provide to aid your research process?
The Franchise Research Process
- What are the various stages of their franchise recruitment process?
- How do they choose their franchisees?
- How long does the process take?
- Can you speak with and/or meet with existing franchisees?
- Can you be provided with a full list of franchisees so you may select the franchisees you wish to speak with?