You’re close to finalizing the purchase of a seemingly dependable franchise: you’re interested in working in the industry the franchise is in, you’ve spoken with the franchisor about the fundamentals of business operations and s/he seems reliable, and you have not only the capital to invest in the franchise but also the drive to become a great business leader.
So far, so good. Now take your preparation a step further by speaking with current franchisees. Not only can they validate everything you’ve learned about the franchise, but they can also provide you with advice and other vital information regarding operations. However, there are certain things you should keep in mind when reaching out to fellow franchisees:
- Speak with five or more franchisees. Each franchisee will most certainly have varied opinions and experiences from one another. To get the full picture of franchise operations, speak with a minimum of five current owners. This way, you should receive enough information to pick up on what works and what doesn’t work.
- Preparation is key. Since franchisees are choosing to speak with you, it’s only good manners to use their time wisely by doing prior research and preparing questions. Ask meaningful questions, prod for important information you couldn’t get from the franchisor, and find out what a day in the life of a franchisee is really like. Some questions include:
- Is your franchise unit profitable?
- Do the cost of goods or services you receive from the franchisor seem expensive?
- Does the franchisor help you with marketing your business?
- Is the franchisor responsive to your questions?
- How many hours do you typically work in the franchise?
- Do you have more than one territory?
- Did your investment meet your expectations?
- Did your investment make a positive impact on your lives and the lives of your family?
- Make connections. If you do end up buying a franchise, the franchisees you meet will become your peers, so it’s best to be extremely courteous and friendly when speaking with them on the phone, through e-mail, or even at a franchisee meet up. Down the line, they may play a valuable role in your success.
Want to learn more about how to give yourself a boost in the franchise world? Read “7 Steps to Buying a Franchise,” a comprehensive franchise guide provided by the knowledgeable New York business law attorneys at The Internicola Law Firm, P.C. And call us today at (718) 979-8688 to discuss your potential franchise.