Top 10 Questions to Ask A Franchisor

1.What is the franchise fee and the total cost involved in purchasing your franchise? Does this amount include working capital?

2.Do I purchase all of my start-up items from you, approved vendors or other sources? (If the franchisor sells you everything, follow up with the question: Do you mark-up what I buy from you?)

3.Tell me about your initial and ongoing training.

4.How many of your franchises have failed and why?

5.What is a profile of your successful franchisees?

6.Have you had people signed up with your franchise and never open?

7.How does your franchise rank in its category?

8.Do you have line 19 earnings claims?

9.Will I be granted an exclusive territory and what is it based on?

Ten. Is there anything I am required to purchase directly from you?

Eleven. Tell me about your national advertising program, do you have a franchise Ad Council?

I know that’s eleven, I just wanted to give you a little extra.

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