Selecting a Franchise? Make Sure to Interview Franchisees

July 11, 2011, 05:52 PM

Before you buy a franchise, its important that you perform your due diligence. The franchisor will gather a lot of information about you and determine if you are the right fit for their business. You should do the same about the franchisor and its business. A critical piece of your due diligence should be contacting franchisees. The franchisor is required to provide you with a list of franchisees, and if they dont a red flag should go up. You should pick a mix of franchisees franchisees currently in the franchise system and those who no longer own franchises, newer and more experienced franchisees and franchisees in varying sized outlets and locations. You should ask questions such as their relationship with the franchisor, whether they think the training and support was adequate, what problems they have encountered with the franchisor and how did the franchisor handle them, why they chose to buy this particular franchise, and whether they would invest in that franchise system again, knowing what they now know. Your interviews with franchisees should help you determine if a particular franchise is right for you and give you an idea of the relationship you can expect with the franchisor. —Nicole J. Harrell