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As well as the many questions that you must pose to a potential Franchisor, and the numerous questions they should pose to you, there are several other considerations for you to ascertain your compatibility with a specific Franchise system. If you are going to be getting into business with someone with the goal of making a superb future together, you must cover more bases than just the basic questions to know how the business makes money.

One of the initial things you should attempt to grasp is the level of development that the Franchisor’s candidate qualification system has reached. Your first reaction to that could be ‘Why do I care about a Franchise Qualification system – I only care if I get a Franchise or not?’ I might suggest that you need to care a large amount.

in fact , if the Franchise applicant qualification system has not been well developed, it may be a reflection on the business of the Franchise itself. The most important asset of any Franchise system will be its folk, including both Franchisees, and Franchisor staff. Almost all corporations will confirm that to be the case. So how do you identify if the statement matches the execution?
If folk are the most important asset, it might follow that the system of finding, qualifying, and granting Franchises to the best Franchisees would be a well thought out and well developed system. If there is not any formal step by step system to provide information to both parties then it may be an indicator that there are a few things astray.
That call should be whether you qualify as someone they can describe as one on their ‘most critical assets’.
If the system is too fast, for instance if you are given disclosure Documents within the 1st week of the due diligence process before many other stuff is considered, I would suggest there are a few things incorrect. To rush is to err. On the other hand, if the system is too slow, you will not get a real flavour for the company thanks to the sporadic nature of the flow. Culture is vital, and a steady flow of information will give you a better feel for the culture of the business than trading info each three weeks for a half year period. That does not imply that you must be in business in that timeframe, only that you would like to pick a choice in that timeframe.
Some systems will include a step-by-step system where you’ll receive information from the Franchisor, and then you’ll be needed to provide some info to them. When you supply the info, then the Franchisor will send you additional information to help gain more intimate knowledge.and so on . The explanation for that sort of system, which I would judge to be good, is that each of you is illustrating dedication to the process. The Franchisor has invested a serious amount of time and money to develop a definite system that is designed to earn all stakeholders a maximum return. So the Franchisor must establish that each new Franchisee is prepared and able to follow a good system. What better place to start than the basic evaluation system.

If the Franchisor does not have a good step-by-step info flow and due diligence system then that alarm bell in your head should go off.

For a’FREE’ e-copy of’A Practical Look at Franchising Your Business’ contact Ken Hollowell, President of Profran Consultants.

Ken Hollowell, President/CEO of Profran Consultants has over 30 years been consulting with companies wanting to become a franchisor and develop a franchise system. Ken Hollowell has developed over 800 franchise business throughout the world. He is one of the most sought after franchise consultants in the USA. In addition to the franchise development work, Ken prepares private placement offering for companies needing to raise funds for their projects or companies. Ken can be contacted at www.pro

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