Questions to ask the franchisor
Though you may think you have found the ideal franchise for you, have you evaluated the franchisor?
Below are some questions to ask the franchisor to help you assess their Irish franchise opportunity.
Remember that there are many types of franchises in Ireland and you may have to adjust the questions to suit the specific franchise you are enquiring about.
- What is the financial history of the directors? Have any been bankrupt?
- What is the background history of the directors? How long have they been in franchising? Why did they get into franchising?
- What are your USPs? Why should I consider you over your competitors?
- What are your long-term plans for the business?
- Do I have to pay a deposit or upfront payment, and if I do not proceed will I lose my deposit or any part of it?
- How long will it take to start trading from the time I sign the contract?
- How much working capital do you think I need, and what help can you give me in estimating my projections?
- What will the training consist of, how long will it last and are all training costs included in my franchise fee?
- What is my expected breakeven and how long should it take me to reach this figure?
- Do you charge ongoing franchise fees and if so what are they and how are they calculated?
- Do I have to contribute to any other costs such as advertising and promotional expenditure that you incur, if so how much?
- What help, if any, will I receive if I want to do some advertising and promotion on my own?
- What help and guidance do you offer in finding the right site in Ireland?
- After I have opened, what ongoing support will I be provided with?
- Do you provide instructional and operational manuals, and can I see them prior to signing?
- What do you do for your franchisees that your competitors don’t?
- How many franchisees do you aim to have in Ireland and internationally in the next 5 years?
- How thoroughly do you vet prospective franchisees to maintain a high standard in the network?
- Have any Irish franchisees failed, and if so why?
- How do you handle grievances with existing franchisees?
- Will the territory offered be for my sole and exclusive use?
- Have you run any outlets in similar areas in Ireland to the one I am looking at?
- Does your company see any threats in the current Irish marketplace?