Becoming a franchisee involves a certain level of calculated risk, but you can reduce it by doing your research and reaching out to existing franchisees to gain a solid understanding of the company you’re considering. Entrepreneur.com suggested asking the following five questions to learn about the ins and outs and ups and downs of their specific franchise experiences.
1. What was involved in your first unit opening? – The answer to this will tell you whether the company provided the necessary training, support, and systems to ease the opening process.
2. Are your franchise marketing programs working? – The majority of companies provide required franchise marketing programs. While these initiatives are intended to attract customers and increase community awareness, they also spark great debate and franchisees need to see quantifiable results.
3. How is your relationship with the franchise company? – You want to have a cooperative and supportive working environment, so make sure you ask about company relations before making the leap.
4. Are you satisfied with your decision to become a franchisee? – Answers will vary widely, but listen with an open mind to both positive and negative responses. Then ask about the strongest arguments for answering yes or no and try to read between the lines to see the big picture.
5. What can I expect to earn? – While this is a very important question for many franchisees, it’s best to save this for last. Still, you deserve to know the average startup investment, the average unit sales, gross and net margins, the main expense categories, and the time it takes a new unit to break even.
Let these five questions provide the important answers you need in deciding whether a particular franchise is the right fit for future.
To learn innovative strategies for developing your franchise business, contact MDG today at 561-338-7797 or visit mdgadvertising.com.
MDG Advertising is a full-service South Florida advertising agency, with offices in Florida and New York, that specializes in developing targeted franchise marketing solutions, exceptional online executions, and solid branding and media buying strategies that give franchises a real competitive advantage.
Our core capabilities include advertising, branding, creative, digital marketing, media planning and buying, public relations, Web design and development, email marketing, direct mail, video marketing, social media marketing and SEO. To view MDG’s portfolio, click here. For more information, email MDG, call 561-338-7797 or log on to www.mdgadvertising.com.
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