Franchise Dictionary Magazine—September 2018

Page 30

fran·chis·ing \ fran-chī-z-ing \verb

1. The right to sell a company’s goods or services in a particular area 2. Covering the bases with Paul Segreto

Exploring Franchise Opportunities: Get the Answers YOU Need!

P

otential franchise buyers know before making a final decision, they need to obtain information from other franchisees and also, their possible franchisors. But what information do they need to get? Generally, I recommend using the Franchise Disclosure Document (FDD) as a guide. Read through it and ask a potential franchisor very specific questions about each item listed. It’s a can’t-miss road map. Here’s a start.

ing of the range of expenses—and why they are what they are. Inquire about assistance for everything from advertising to site selection to your grand opening. What is the temperament of the franchise group nationally and within your market? Of course, I recommend speaking with franchisees, too. Make sure to ask them about costs, problems, profits, and trends. Discuss competition with both the franchisor and franchisees.

WHAT IS THE HISTORY OF THE FRANCHISE CONCEPT? What is the founder’s vision? Who is on the executive and support teams? What experience do they bring to the table? If a franchisor hasn’t worked at a location, how has he learned about daily operations? Has he owned a business before? It’s important to understand how these individuals relate to franchisees.

ASK ABOUT EXIT STRATEGIES. At some point, you may want to exit the system or you may have to exit. If you have to exit, is there support if you’re in trouble? Ask about transfer fees and the process of selling your business. Understand the franchisor’s approval process. What happened to each franchisee listed under terminated or closed franchises on the FDD? What happened to their locations? Have they continued operation under a new franchisee or corporate? Is the location still available? Ask yourself if you would consider a long-term relationship with this brand

HOW HIGH COULD EXPENSES GO? All expenses should be clearly defined. It’s imperative to gain a complete understand30

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Food franchising now

11min
pages 38-53

Last Word

1min
page 74

Interview

3min
pages 68-69

Breaking Down the FDD

3min
pages 66-67

Creating a Buzz

3min
pages 64-65

How to Succeed in Franchising Financially

2min
pages 62-63

Partnering Up

2min
pages 60-61

The Secret to Food Franchise Success

2min
pages 58-59

Food: The Heart and Soul of Franchising

3min
pages 56-57

Chew on This

2min
pages 54-55

Cocoa Grinder

1min
page 52

Smoke's Poutinerie

1min
page 50

Mahana Poké

1min
page 48

The Toasted Yolk Cafe

1min
page 46

Clean Juice

2min
pages 44-45

The Waffle Experience

2min
pages 39-41

Mamoun's Falafel

2min
pages 42-43

Find Career Bliss

1min
pages 34-35

Entrepreneur

2min
pages 32-33

Franchising 101

2min
pages 30-31

Legal advice

2min
pages 28-29

Franchisee of the month

2min
pages 26-27

What are you afraid of?

1min
page 20

5 SEO tips to boost your business

1min
page 20

Stage Coach

1min
page 18

E-turn to sender

1min
page 16

Showtime

1min
page 14

Older, wiser and happier

1min
page 12
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