The Questions That Franchisors Ask Their Prospective Franchisees

Franchisors would definitely want to know if their prospective franchisee is the right person, and they are bound to ask a few questions.

Here are a few most likely questions.

Question 1: What are Your Franchising Goals?

Before stepping into franchising, every franchisor and franchisee should have certain goals. Franchisors ask about the prospect’s goals so to see if they are compatible to theirs.

Mostly, the franchisor's goal will be to ensure brisk business at the outlets, as well as great brand reputation and a good long-term relationship with their franchisees.

Question 2: Why did you choose our Franchise Sector?

The reason for choosing a particular franchise vertical is important, in order to understand if the prospective franchisee has the resources and expertise to take the franchise business to the next level. Most franchisors will ask this question.

Question 3: How much are you Investing & What are the sources of funds?

The initial investment for purchasing a franchise ranges from several thousands to a million dollars or more, depending on the sector and location.

Franchisors would want to know if the prospective franchisees have sufficient money and resources for the initial processes and to run the outlets until they start making profits out of franchising.

Question 4: Do you have any Business Experience?

Usually, franchisors provide some level of training and support to their franchisees. However, business experience in the same industry will help the franchise to boot up faster.

Question 5: What is the amount of Time you are willing to Invest in the Franchise Business?

Franchising usually requires long and hard working hours. However, there are prospective franchisees who want to buy more outlets as a secondary business.

This question helps the franchisor to decide if the franchise can ensure the success of the outlet, in spite of the other preoccupations.

Question 6: How do you want to Expand Your Business?

Buying a franchise is the first step, and expanding it is the next for a franchisee.

Naturally, franchisors would look forward to hearing about the future plans of the prospective franchisee.

Question 7: When are you Planning to Open and Where?

Most franchisors will provide location options to prospective franchisees, but some expect the franchisees to come with a suitable and evaluated location.

Question 8: Who else are Involved in the Franchise Business?

It is important for a franchisor to know if you are purchasing the franchise alone or with a partner or family members.

This information helps them with future communication and decision-making processes.

Question 9: What is Your Exit Strategy?

This is one of the most important questions a franchisor would ask. The information helps to clarify as to whom the franchisee would like to sell the business as an exit option. It may be the franchisor, a family member, or a third party.