If you have been investigating the idea of opening a franchise, you’ll likely be invited to participate in a business validation call. Now is your time to ask some burning questions!
Franchise validation calls are a crucial part of the reviewing process for any franchise system. They give you the chance to talk to people who have been there and done that. This provides you with an honest, open insight into the franchise opportunity you are thinking about taking on.
To make sure you get the most out of these calls, here are some top questions you should be asking:
1. How Do You Feel Your Franchise Launch Went?
This question gives you the opportunity to find out how the training and systems provided by the franchisor work. Honest feedback should showcase how easy the franchisor makes the opening and operating of the franchise. Understandably, there may be some hiccups when opening the business, but find out whether these were easily overcome or whether they resulted in huge setbacks.
2. Is There Enough Ongoing Support?
One of the benefits of becoming a franchisee is the amount of support you get from your franchisor. So, check with the current franchisee whether the franchisor offers efficient training programs that teach you how to operate the business on a day-to-day basis. Ask whether they continue to support you after the initial setup, and whether their front-line support staff are helpful and efficient.
3. Are the Marketing Programs Effective?
Another key benefit to being a franchise, aside from the support, are the marketing initiatives put together by the franchisor. These are designed to attract new customers to your business. That’s why it’s also worth questioning the franchisees on whether they feel they are effective or not.
4. How Much Money Can I Make?
As a prospective franchisee, this is probably one of the most important answers you will be looking for. You will want to find out how much investment it takes to start the business, the main expenses, the average sales, and how long it takes for a new franchise to start generating money.
You might want to save this question until later on in your conversation, because franchisees may be reluctant to jump straight into their personal finances. Gauge their reactions to your other questions first to see how far you can push this question.
5. Would You Set up this Franchise if You Had to Start All Over Again?
One of the key indicators a franchisee is happy with their chosen franchise is if they would go through the entire process again. Regardless of their answer, you should ask “Why?”
A lot of business owners will say “yes,” because their entrepreneurial spirit and pride will direct them towards a positive answer. However, to get to the nitty gritty, probe them for the reasons why they feel this way.
Asking these questions in your business validation call, alongside some of your own more personal, less-obvious ones, will allow you to get a feeling as to whether this franchise opportunity is right for you.
What questions did you ask during your franchise validation call? Did they change your mind or reinforce your decision? Share your thoughts below!