When Buying a Franchise Should I Contact Existing Franchisees?
Absolutely. When buying a franchise it is always best to contact existing franchisees before moving forward with the purchase. Contacting existing franchisees of the franchise company you are interested in purchasing will allow you to get an idea of how the franchisees feel about the franchise.
How Do I Get Contact Information For the Existing Franchisees
The contact information for existing franchisees can be found in Item 20 of the franchise disclosure document (FDD). Be sure to contact multiple franchisees that are listed and not only the “star franchisees” that the franchisor recommends for you to contact.
What Should I Ask the Franchisees When I Speak with Them?
When speaking with the existing franchisees that you contact it’s a good idea ask questions about anything you are curious about.
Here are some topics we recommend covering when speaking to the existing franchisees:
- How have you done financially with the product/service that the franchise offers?
- Do you feel the franchise fee and royalties are appropriate for the product/service offered?
- How was the training when initially buying the franchise?
- How has the continued support from the franchisor been?
The information you will receive from other franchisees involved in the franchise system is invaluable and should be taken into consideration when moving forward with the process of due diligence when buying a franchise.
For More Information on Buying a Franchise We Recommend The Following
- REQUEST a copy complimentary copy of “An Entrepreneurs Guide to Purchasing a Business or Franchise“;
- REVIEW our database of articles concerning “buying a franchise“;
- CONTACT a franchise lawyer at (800) 976-4904.