Questions to Ask a Franchisor Before Buying a Franchise

Before buying a franchise, you should make sure that you are making an informed decision before signing the contract of agreement. It is critical that you should ask specific questions to the franchisor so that you are well informed of the franchise business. A franchisor should be open to hear questions about their business. Asking vital questions gives them the idea that you are curious and enthusiastic about venturing into their business.

Background Check

Although you may have already read about your prospective franchisor’s business, it’s good to ask about the history of your potential franchise business. You may ask about who are the business’ founders, what motivated them to start the business and other related questions. As a last question to know about their background, you can ask what makes their business unique from their competitors so you can have an idea about the distinctiveness of your franchise.

Franchise contract being reviewed by business partners

Financial Questions

You may also ask about the financial aspects of the business that is not stated in the contract of agreement. For example, you may ask about how much money you can earn if you venture into your franchisor’s business. Franchisors cannot predict an exact amount, but they should have a good idea about a range of how much income their franchise earns. Be aware that your prospective franchisor may state information about gross sales that doesn’t include operating costs and other expenses.

Setting Expectations

Since you are going to operate a business based on your franchisor’s regulations, you should ask if they have any goals that must be achieved in a certain time frame. You can also ask about certain contingency plans if the business needs to resort to another approach just in some goals become difficult to achieve.

Open a Franchise with Experimax

Experimax helps you open a computer repair franchise business. The company will help you be informed of the latest developments in computers and electronic devices so that you can have a broad knowledge of your franchise. If you want to open a computer repair franchise with Experimax, call 1300 218 674.