How much should I tell potential franchisees about costs at a franchise trade show?

A: One of the most common questions franchisees will ask during a franchise trade show is what it will cost them to invest in your opportunity. Cost is in most cases the No. 1 factor in whether or not a franchisee is interested in learning more about your franchise. 

When a potential franchisee at a franchise trade show asks about the costs associated with starting a franchise you should be careful to disclose accurate estimates for all figures. Don't try to mask costs or omit requirements as these may violate franchise laws at both federal and state level, in addition to setting yourself and the potential franchisee up for disappointment.

Franchisees are at a franchise trade show to seek an investment from which they can profit. The franchisee will most likely inquire about their own earnings potential with your franchise, and again you need to make sure you can prove any estimates or projected earnings with solid evidence of past financial statements.

As always, be honest about anything you are asked, as fraudulent or misleading information could come back to haunt you later if a dispute is encountered. If a franchisee is asking very detailed, technical questions you may want to offer a private meeting at a later date, away from the chaos of the franchise trade show floor.

Holding informative seminars following the franchise trade show is an excellent opportunity to further discuss the details of your investment opportunity to interested franchisees. There you can discuss your franchise opportunity more in-depth and answer the more targeted questions potential franchisees may have.

Contacting a New York Franchise Lawyer

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