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When buying a franchise, one of many best tools you’ve got at your disposal is the power to contact current franchisees. Not contacting them and investigating their opinion of the franchisor completely would be a giant mistake. Once you contact a current franchisee, you get the opinion and outlook of somebody who’s in the same position that you may be in, should you decide to just accept the franchise agreement. Because of this, their advice and input are more valuable than any other you might get. When you have issues about what the franchisor is like, whether or not their claims are true, how many hours you might work, or how the enterprise is run, a current franchisee may be able to assist you to make a more knowledgeable decision about buying a franchise.
Typically, the franchisor will introduce you to a couple franchisees, and even take you on a tour to see their locations and to talk with them. These meetings could be helpful, however it’s a must to do additional work to really get the most out of learning from current franchisees. It is a good suggestion to go back to those franchisees after the tour to ask them any questions you did not really feel comfy asking in front of the franchisor, or to get any answers they might not have wanted to reveal in front of the franchisor. Nonetheless, keep in mind that even in case you are alone with these franchisees, they may not give you a full picture of the franchise as a whole. Some franchisees are paid to solicit new ones, and if the franchisees you speak to got money, they will not be solely truthful.
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Given this, you need to search deeper into the network of current franchisees to get a real impression of the franchise as a whole. Within the FDD (Franchise Disclosure Doc), franchisors provide contact information for past, current, and future franchisees that you may interview by yourself, who are less likely to have a biased opinion of the franchise. The more franchisees you interview, the better, to get the most complete picture. You can ask them things like whether or not they think the franchisor is trustworthy, and what they think of the present FDD. You must also attempt to interview franchisees from a wide variety of locations, years of experience, and success levels so that you’re not getting a biased sample of individuals either praising the franchisor or complaining about it.
When you interview current franchisees, keep in mind that some of the franchisees are going to be more successful than others. This may impact what they say to you about their opinion of the franchise as a whole. When you interview the less successful ones, attempt to confirm whether or not the franchisor is to blame for their lack of success, as an example, if they are notthey aren’t flexible enough or are not offering enough support. Understanding why those franchisees are not successful can assist you determine whether or not this franchise is the best one for you, and the way to be successful if you happen to do decide to buy it.
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