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SBOMAG Roundup: Fifteen Questions To Ask The Food Franchisor

[ 0 ] Jan. 8, 2014 | SBO Editor

questions to ask the franchisor

Thinking of buying a food franchise? They are superhot and popular moneymakers. Before you take the plunge, study this list of questions to ask your potential franchisor:

Ready to contact a franchisor in the food industry to discuss become a franchisee? To make sure the ‘fit’ is right, ask the franchisor the following questions:

o Does the franchisor staff attend seminars on franchising and management?

oDo field consultants offer help and guidance or merely act in a regulatory role?


  • How many franchises are expected to be added each year?
  • Where will they be located?
  • What is the success rate of existing franchises?
  • What method is used to protect franchisees from poorly performing franchises?
  • Is there a franchise owners association?
  • Is there a franchise advisory council?
  • Who owns the trademarks, service marks, etc., and are they federally registered?
  • Are there any disputes pending or threatened against the trademark.
  • Has the franchisor complied with the FTC and state disclosure laws?
  • Are any senior management or key personnel leaving the system?
  • Does this company compete with the franchisees in the marketplace?
  • Will the franchisor finance any of the costs?

And finally: Is the franchisor willing to negotiate the terms of the franchise.

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Category: Features