FRANCHISE SELECTION CHECKLIST FRANCHISE opportunities are very tricky in selection. They tend to be easy to make money. But in most cases have to work hard. THE FOLLOWING CHECKLIST COULD HELP YOU TO BRING DOWN YOUR ERROR IN JUDGEMENT IN THE SELECION PROCESS. I. Reputation of the franchisor. *how long has the franchisor co. been in business?
2 *If it is a new co., how long has the concept been tested ?
3 *who are the principals'?
4 *what are the qualifications of the people? *What are the current / future plans of franchisor? *Is the franchisor registered with franchising council? *What is the financial standing of the franchisor? *Have you questioned/surveyed any current franchisee[s]?
2. Franchise product/service. *what is the market image for the product/service? *Would you buy/use the product / service yourself? *Are you prepared‑next 3to 5 years to sell/manage this business yourself? *Is this product all year round or seasonal product? *What is the demand pattern for this product /service? *How is this product priced ‑‑up market/low price/ average? *How is this kind/similar products sold currently? *What are the selling restrictions? *Are you entitled to new developments/trademarks/ etc? *what is the profit margin?
3. FRANCHISED AREA. *is the franchise sales area geographically defined? *do you have exclusive right in this area? *what is the sales potential in this area? *what is the nature of competition direct/in direct? *are the existing franchisee successful?
4. FRANCHISE CONTRACT. *what are the rights / obligations?
FINALLY ARE YOU REALLY PASSIONATE ABOUT THIS BUSINESS? IT IS THE PASSION THAT DRIVES TOWARDS THE SUCCESS.
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