WHAT QUESTIONS SHOULD YOU ASK THE FRANCHISOR?

WHAT QUESTIONS SHOULD YOU ASK THE FRANCHISOR? 1. What exactly will you do for me that I cannot do as easily for myself?
2. What am I expected to do for you?
3. How do I know if I can successfully operate a franchise?
4. Do I need any special experience?
5. Will the franchise company investigate me?
6. How long has the franchise operation been in business?
7. How many franchises are now operating?
8. Where are they located?
9. How many have failed so far? Where are they?
10. May I call and see your franchisees at their places of work?
11. May I ask them questions about their business?
12. May I see the net profit figures for a number of your franchised operations?
13. Will the products your franchises sell still be in demand five years from now? How do you know?
14. Is your franchised business active all the year round, or are some periods traditionally busier than others? Seasonality affects a number of franchises, but their busy periods compensate for the slower ones.
15. Has a market survey been done on the area where I am contemplating becoming a franchisee?
16. What is the current and potential competition within my designated territory?
17. What is the exact and exclusive territory included in my franchise?
18. For how long will I be guaranteed my franchise?
19. What renewal options on my contract can I expect? 20. If premises are involved, who holds the head lease?
21. What products or services can I see?
22. What restrictions apply to how I use the franchise trademark or name?
23. Do I have to stock minimum inventories of products?
24. Do I have to sell certain minimum amounts each week/month/ year?
25. Do I have to buy my stock from the franchisor?
26. What if I find better prices elsewhere?
27. How much is the franchise fee?
28. Please spell out the royalty fees in detail.
29. What other costs will I be liable to pay?
30. Who determines the prices at which I sell my stock?
31. I know that I will be expected to send detailed reports on a regular basis, but who pays for their cost?
32. What will I be expected to contribute towards advertising and promotional expenses?
33. Will you help me to raise the capital I need to become a franchisee?
34. What credit terms do you offer on stock for my franchise?
35. Will I be able to choose the location of my franchise?
36. What help will I receive in finding a good location for my franchise?
37. What pre‑opening, opening and post‑opening assistance will 1, receive?
38. What training is provided for me and my staff both before and after we open?
39. What manuals are provided? (Operations? training? sales?)
40. What help will I receive with each of the following? • Merchandising and marketing ideas • public relations • designing layouts and displays • local advertising • inventory control • financial analysis.
41. What trouble shooting help can I expect? A2. How much of my money will I get back if my franchise fails? 43. What are the rules governing my rights to sell my franchise?
44.What if I want to transfer ownership of my franchise to another person?
45. What termination rights do each of us have as franchisor and franchisee?
46. What are the exact conditions under which you have the right to cancel the franchise?
47. What happens if you as the franchisor go into liquidation?
48. What if I go bankrupt or into liquidation?
49. What happens to my franchise if you, the franchisor, die unexpectedly?
50. May I take the contract away now for my legal advisor to study with me?
51. Do you subscribe to the Franchising Code of Practice? If not, why not?