Start calling all existing franchisees to find out more about the one you want to start a business with. Equally important, pay them a visit in person.
Information in Uniform Franchise Offering Circular
Another important piece of information that are uniform franchise offering circlet contains is a list of existing franchisees. This includes the franchisees who have been terminated or who have ended their relationship with the franchisor in the past. You will have access to the address and phone numbers of these businesses. If a list of terminated franchisees is long but it could be an indication that entrepreneurs find problems working with the franchisor. You can use the contact information for former franchisees to get more information as to why the agreement was terminated on whether the business had some problem with the franchisor.
Call & Interview Existing Franchise Business Owners
You can also decide to interview some of the existing franchisees in person. This is a good idea and quite an important step in your research. Do not go by the selected few names that the franchisor provides, but make your own sample list.
Visit Existing Franchises in Your Area
You can visit the current franchisees and talk to the franchise owners to find out what kind of business they are experiencing and what is your experience with the franchisor. You’ll get an idea of what a day today business can be like and whether you want to have a similar lifestyle as for as your business is concerned. In order to get all related information from the existing franchise, it is a list of questions that will help you get your research of the ground.
Questions to ask existing franchise businesses
- Did the franchisor offer any training?
- Was the training helpful in getting the business started?
- Is the franchisor communicative and responsive to your business requirements?
- Have there been problems with the franchisor that you did not anticipate?
- Has your experience showed that the information provided in the uniform franchise offering circular was accurate and realistic, is the income you generate in tandem with the expectation stated in the uniform franchise offering circular?
- Is the business seasonal?
- Are there expansion possibilities and opportunities for additional franchise in the system?
- Would you make the same decision to choose this particular franchise all over again based on your current experience and information?
Ensure that you discuss the details of the relationship of the business owner with the franchisor. Do things get easily done such as the purchasing process?
Talk to as many franchisees as you can to get a broader perspective and an accurate picture of the franchisor. Do not hesitate to ask sensitive questions even though some franchisees may not be very willing to answer them. One of the questions that often gets ignored is whether the franchisee had any conflicts with the franchisor. Conflicts are normal and natural in the course of a business between two different parties were involved. The important factor is how the problems were resolved and how often to the conflicts arise. The conflicts should be not serious enough to interfere with the running of the business and profit making.
Visiting existing franchise and talking to franchise owners will give you an idea of what businesses like. You will get to see firsthand how the business is run, what a typical business days like. Simply thinking in monetary terms might not be a very good idea because you probably also have a certain lifestyle in mind when you think of starting your own business. Certain franchise could have long hours involved as well as constant attention to the business. Investigating different franchise in different fields can help you choose one that fits your lifestyle better.
Spend a Week Working in Existing Franchise
Some experts also advise that you should spend at least one week working in an existing franchise. Some franchises may facilitate this kind of an arrangement. This is the best way to evaluate what your life is going to be after you sign the contract. Working in a franchise and spending time there gives you a good idea to business because all franchise for a particular company hubbub of the same business model and have to deal with the same parent company.
If by the end of your research you have shortlisted more than one franchise companies, you just have to decide which one you are more comfortable with. That is another reason why visiting existing franchise in person is so important in the selection process of the right size business with herself.