Have you ever had a fantastic idea for a business but felt hesitant about going it alone? Franchising allows you to own and operate your business while leveraging the proven systems, brand recognition, and ongoing support of an established company. It’s a model that has helped thousands of entrepreneurs reduce risk and fast-track their journey to business ownership. However, there are a few important questions to ask before you buy a franchise that can help you determine whether it’s the right move for your goals and lifestyle.
1. What Does the Company Want in a Franchise Owner?
When a company lets someone open a franchise, they’re looking for a specific kind of person. It’s similar to applying for a job. The company has certain expectations.
- Experience: Do they want someone who has run a business before?
- Skills: Are they looking for someone who’s good at managing people, or someone with technical skills?
- Qualities: Do you need to be really organized, good at following rules, or great at customer service?
You need to find out what the franchisor wants so you can see if you’re a good match. This is a very important question to ask before you invest in a franchise.
2. What Problems Do Franchise Owners Face?
Every business has problems, and franchises are no different. It’s good to know about these beforehand.
- Competition: Are there other similar businesses nearby?
- Costs: Can costs go up unexpectedly?
- Staffing: Is it hard to find and keep good workers?
By asking the franchisor about common challenges, you can prepare yourself. Knowing the potential problems in small business franchise opportunities helps you make smart choices.
3. How Does the Company Help When There Are Problems?
When things get tough, how much help does the franchisor give you? This is a really important question to ask before you buy a franchise business.
- Training: Do they offer ongoing training and support?
- Advice: Can you call someone for help when you have a question?
- Resources: Do they provide tools and systems to help you run the business?
A good franchisor is like a partner, helping you succeed.
4. What Things Does the Company Give Franchise Owners?
When you start a franchise business, you’re not just getting a name. You usually get a package of things to help you.
- Business Plan: A guide for how to run the business.
- Marketing: Help with advertising and getting customers.
- Supplies: Sometimes, they tell you where to buy the things you need.
It’s important to know exactly what you’re paying for.
5. What Kind of Training Will I Get?
Training is super important when you buy a franchise. You need to learn their way of doing things and here are some questions to ask before you buy a franchise;
- Length: How long does the training last?
- Topics: What will they teach you? (e.g., making the product, customer service, managing money)
- Support: Do they help train your employees too?
6. How Much Money Do I Need to Invest?
To invest in a franchise, you have to spend money. It’s not just one fee; there are several costs.
- Initial Fee: A one-time payment to the franchisor.
- Startup Costs: Money to get your business ready (e.g., renting a place, buying equipment).
- Ongoing Fees: Regular payments to the franchisor (like a percentage of your sales).
Make sure you understand all the costs involved in franchise opportunities for sale.
7. How Much Money Can I Expect to Make?
Of course, you want your franchise to make money! The franchisor might give you some ideas about potential earnings.
- Projections: What do they think you could earn?
- Average: What do franchise owners typically earn?
Remember, these are just estimates. Your success depends on your hard work and how well you run the business.
8. How Does the Company Get Along with Franchise Owners?
A good relationship with the franchisor is key. You’ll be working with them closely, so you want it to be a positive experience.
- Communication: How do they communicate with franchise owners?
- Support: Do they listen to concerns and help solve problems?
Try to talk to other franchise owners to get their honest opinions.
9. How Does the Company Stay Ahead of Other Businesses?
Businesses are always changing. You want to be part of a franchise that is looking toward the future.
- Innovation: Do they come up with new ideas?
- Technology: Do they use new technology to improve the business?
- Trends: Do they keep up with what customers want?
This is important when considering the best franchises to buy.
10. What Are the Rules of the Franchise Agreement?
The franchise agreement is a legal contract. It’s a set of rules you and the franchisor agree to.
- Length: How long does the agreement last?
- Rules: What are you allowed and not allowed to do?
- Renewal: Can you continue the franchise after the agreement ends?
It’s crucial to understand the agreement before you sign it.
Buying a franchise presents a compelling opportunity for those seeking to own a business with the backing of an established brand and system. However, it’s a decision that warrants careful consideration and thorough due diligence.
By knowing the right questions to ask before you buy a franchise and seeking professional guidance, you can increase your chances of making an informed decision and embarking on a successful entrepreneurial journey.
Still wondering if buying a franchise is right for you? Read our article: Franchise vs. Starting a Business from Scratch: Which Path is Right for You?
How Blue Star Franchise Can Help
Blue Star Franchise is a full-service franchise brokerage firm dedicated to helping aspiring entrepreneurs discover the perfect franchise opportunity that aligns with their lifestyle, passions, and financial goals.
As a certified member of the Franchise Brokers Association and the Franchise Training Institute, we offer personalized, no-cost services to franchise candidates. Our mission is to “light the way to franchise success” by offering expert guidance, access to over 500 vetted franchise opportunities, and a streamlined, eight-step process designed to match clients with profitable and personally meaningful business ventures.
We go beyond just matching clients with businesses; we provide tools, education, and ongoing support to help each candidate thrive as a confident business owner. Whether you’re a corporate professional looking to transition to entrepreneurship or an investor exploring new ventures, we’re your trusted guide on the journey to ownership. With roots in Alexandria, Virginia, but serving clients nationwide and beyond, we combine deep industry insight, innovative technology, and a genuine passion for entrepreneurship to help clients make informed, empowered decisions about their future.
Take advantage of our resources to begin your franchise journey today:
- Book a free, no-obligation consultation with our franchise experts to discuss your goals and explore potential opportunities.
- Contact us with any questions you may have. We’re here to provide the support and information you need.
- Take our free “Franchise CEO 101” course to gain essential knowledge and prepare for success as a franchise owner.
For more information or inquiries, email info@bluestarfranchise.com, call (202) 953-2195, or visit us (by appointment only) at 2800 Eisenhower Ave, #220, Alexandria, VA 22314.