If
you're interested in opening a Ice Cream franchise, you will need to speak with
the franchisor company sales team. Not sure what to ask them? Have no fear, below
are some key questions you must have your franchise company answer before doing
business with them.
1. What is the
risk involved with franchising and how do you (the franchiser) intend to minimize
that risk? 2. What happens if I decide I
no longer want to operate the franchise? Do you (the franchiser) have a policy
that requires me to pay a cancellation fee? 3.
Do you have any lawsuits against your franchise? May I see the list of lawsuits?
(Look at reasons sited to see if there is a pattern). 4.
What is your franchisee turnover rate? Can I have a list of the franchisees
that left? 5. How much money can I potentially
earn? - They should not answer this question, as the law prohibits them. Be
careful of the ones who do answer this. 6.
Do the company-owned stores provide most of the support for the parent company?
(Should be a yes to avoid over-dependence on the royalty stream). 7.
Is your franchise trademarked? (Should be because it's what you are buying
with the franchising fee). 8. How long is
your franchise-training program? (Don't want it to be too short/long). 9.
Can I see some of your company's financial statements? 10.
Can I have a list of all the current franchise owners close to my area? (Speak
to the owners and discover their level of satisfaction and profitability).
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