The most honest and forthcoming franchiser can't tell you what it's like to be a franchisee. So, you should take the time to call existing franchisees and get some candid answers to your questions. Be careful that you don't get a limited list of hand-picked contacts.
It would be a waste of time to talk only to the most successful operators or those who are coached to give the right answers. Calling franchisees at random will give you the clearest picture of what you're getting into. Here are some questions you should ask:
1. Are you happy with your franchiser? How is your experience different from what you expected?
2. How long did it take for you to realize a return on investment?
3. Approximately how much are you earning? Is it what you expected?
4. How many hours a week do you spend working on the business?
5. Did the training your franchiser provided really prepare you to run this business?
6. Were there any hidden fees or unexpected costs?
7. Are there restrictions on the products you sell and use in your business? If so, were you told of those restrictions beforehand?
8. What do you think of the marketing and advertising? Does the franchiser advertise as much as you were promised it would?
9. What kind of support do you receive now? When you have a problem, is your franchiser responsive or do you feel like you%u2019re on your own?
10. What did it cost you to build and start the franchise?
11. Did your franchiser accurately estimate the start-up and operating cash you needed?
12. If you had it to do all over again, would you choose the same business and franchiser?
MARY E. TOMZACK is the President and Founder of FranchiseHelp, Inc. She is a noted franchise expert and the author of Tips & Traps When Buying a Franchise (First publication,1994,McGraw-Hill; new and completely updated, revised edition, 1999, Source Book Publications). Ms. Tomzack is often interviewed for franchise articles in publications such as The New York Times, "Franchise World" and "Entrepreneur Magazine."
Prior to forming FranchiseHelp, Ms. Tomzack researched and wrote on general business topics for the Economist Intelligence Unit (EIU) where she authored the book Going Global: Strategies and Techniques for New Multinationals. In addition, she was a part-owner in two franchised businesses, and has owned and operated a fragrance manufacturing and marketing company, which she successfully sold in 1989.
Educational credits include a B.S. Degree from Pennsylvania State University, an M.B.A. in Marketing Management from Pace University and attendance at NYU. Reach her at (914) 347-6735 or at company@franchisehelp.com
