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Congratulations! You think you have found the right franchise for you. Now it is time to take the steps necessary to start a franchising business. The following post will help you navigate the validation process for franchises. It is another way to ensure that your investment is a good fit. Find out everything you need to know about franchise validation and what questions they can answer.
Defining the Role of Franchise Validator
You will be able to meet with current franchisees during the franchise discovery process. Franchise validators are people you meet, and they are an essential part of franchising.
Legally, franchisors cannot answer specific questions, and the disclosure document may not address these specific questions. These questions often concern financial details. For current franchisees, no rules like these exist. Make sure you ask your validator regarding the franchising experience and, if necessary, the financial technicalities. Franchise validators will allow you to get a glimpse into the life of a franchisee.
Questions You Should Ask
Most likely, your calls for franchise validation (sometimes, multiple calls) will be with individuals familiar with the topic. The franchisor does business with them as they’re likely open-minded, successful, and friendly. So, don’t be afraid to ask questions! Ask all the questions you want, and it will help guide your final decision. They were there not that long ago, and they had many questions, too, before investing.
It is a great idea to be prepared to ask questions on your own to ensure you receive the correct information. Franchise validators could have many answers to your questions. These are the ones we found helpful to help you with the franchise validation journey:
- Can you describe the relationship between franchisors and franchisees?
- What length of time are you a franchisee?
- Did you find a particular period that was the most difficult being a franchisee?
- Which job experiences prepared you for owning a franchise?
- What has changed in the role and responsibilities as an owner over time?
- What are your responsibilities daily? What are your responsibilities?
- Do you feel comfortable disclosing financial information regarding the franchise business?
- What are the difficult moments of running a franchise?
- Have you ever worked with franchisees from other regions or the system?
- What financial data should you watch out for?
- Are you achieving your sales goals consistently?
- What is the marketing support like, and how much of it do you get?
- What if your sales were consistent year after year? What about year-over-year?
- How long did it take for your business to take off before you achieved your targets in terms of sales?
- Would you consider franchising with the same brand if you had the chance to turn back time?
- Do you know of any other information I should have?
Now it’s up to You
Are you up for starting a franchising business? Once you get answers to all of your questions, you’re ready to get going and be successful!