While starting a franchise, be prepared to become the annoying 6 year old who asks one question after another to the harassed teacher! In case you haven’t noticed, these children tend to become somebody in life and if you do exactly that when you go out to buy a franchise; you will also end up with one of the best franchises possible. So, here are some 10 questions to ask your franchisor when you are inquiring about the franchise opportunity.

1. How long have you been in the business? The answer will make you aware of the experience of the company as a product/service provider as well as a franchisor. It is quite imperative that the franchisor knows how to franchise properly before it starts offering franchise business for sale.

2. What kind of units do you generally have? If the company has more owned units than franchised units, then it may not be that interested in developing the franchise chain as such. Again, a franchisor that has more multi-unit franchisees is one of the best concepts in the industry, because an existing franchisee opens another unit only when his first unit is a success.

3. How much will it cost me? Though a very straight question, but the answer is not that simple. Along with franchise fee and other fees, the franchisor should give you an estimate of how much money you will need to run the business on a monthly basis, before you start to generate profit.

4.Are you giving any projection? Can I see the actual financial record of such a projection? By law, a franchisor can give earning claims only after giving relevant documents to support them. Generally, it will provide the earning report of a unit which, in comparison with the unit you purchase, is same in size and operates under the same kind of market. If such projection is given, don’t forget to check out the original report of the financial statement of that unit.

5.What is the future of the industry? Best franchises look forward to stay in the business for years. So, you will know that you have chosen the right franchise opportunity when the franchisor has a detailed answer to this question.

6.Do you offer site-selection assistance? The location can make or break the franchise business you are opening. Most top franchises offer help to the franchisees in selecting the right site. Therefore, don’t forget to ask whether your franchise is offering effective support in this department.

7. Do you offer protected territories? This kind of provision in the franchise agreement means that you won’t have to fear for competition from your own company within the same market.

8.How often will I hear from you or meet you? A franchisor that comes to visit its franchisee every other day is as unwelcome as the one that sells its unit and then leaves you as an orphan franchisee. Therefore, it will be fine, if the franchisor prefers setting up meeting on a weekly basis.

9. How many hours will I have to commit? This will include both the office-hours as well as time required for carrying out paperwork and meeting new clients.
10. Who pays for my employees training? If you have to employ people when you are starting your business, it is very important that they learn the business system properly along with you. This will help you to avoid any such mistake that they may make, thus saving you from breaking any franchise agreement clause.