20 Frequently Asked Questions and Answers about Franchising – Part II

Here’s the second set of Frequently Asked Questions (FAQs) about franchising. Click Here to find the First Part.

Question 11 : Do your likely Customers have Problems with the ‘Lookalike’ Characteristics of a Franchise Business?

Nowadays, consumers expect consistent quality from a brand, regardless of the outlet. They are well-aware that franchises have the same brand standards, regardless of the location, which makes the ‘lookalike’ branding of your outlet an advantage, and not a liability.

Question 12 : What are the Things to Consider before Buying a Franchise?

There’s a huge list of things to consider before owning a franchise business. It includes business model evaluation, performance metrics of the franchisor and other franchisees, hours of commitment, and more.

Question 13 : What are the Franchising Trends in vogue?

Like any other business practice, there are always trends in franchising. Use of technology tools to streamline operations, internationalization, and the entry of women in considerable numbers are now trending.

The use of technology to streamline business is a major trend that is helping a lot of franchises to do more with less.

Question 14 : What are the Benefits of Becoming a Franchise Owner?

The benefits of becoming a franchise owner over opening a stand-alone business are:

• A proven and established business from day one
• Reduced risk of failure
• Robust supply-chain
• Peer group of franchises and business best-practices
• More…

Question 15 : Is there Anything I must do before Signing the Franchise Agreement?

Check for franchisor support, audited financial statements, the cost of starting the franchise business, responsibilities of both the franchisor and the franchises, and make sure that all of these are in line with your expectations.

Question 16 : Can I Search Franchise Opportunities based only on my Requirements?

Yes! You will have all the freedom to choose the franchise of your choice based on your financial status, location, and preferred industry.

Question 17 : How can I find out Which Franchise Business to Invest In?

You need to look for the franchise’s popularity, success rate, financial status, franchise agreement, etc. If you take the advice of an expert franchise attorney and financial advisor, then they can guide you in taking a prudent decision.

Question 18 : What can be the Reasons for Franchise Failure?

The reasons for any franchise failure can be: bad location, lack of demand, insufficient franchisor support, inefficient operations, ineffective marketing, and more.

Question 19 : Will My Franchisor Support Me Beyond Initial Training?

Most franchisors will extend their support even after the initial franchise training.

However, the exact quantum and areas of support you will get depends on the franchisor, the franchise needs, and the franchisee owner’s efficiency in handling the business.

Question 20 : What are the Types of Businesses that can be franchised?

You cannot convert every product/service into a franchising model. It is advisable to research the business before you plan to buy it.

Hotels, fast food outlets, cleaners, construction firms, real estate, etc. are known to find success in franchising.

For more information on franchising, Click Here.