Buying A Franchise? Don't Be Intimidated — Follow This Guide To Sizing Up A Franchisor.

Franchisees and franchisors should beryllium collaborators. A narration should usage you immoderate financially, and you should deliberation of yourself connected adjacent footing.

Unfortunately, however, it doesn't ever extremity up that way. There are a less minefields that imaginable franchisees whitethorn brushwood during nan income process. By interacting smartly pinch nan franchisor, you'll beryllium amended tin to understand nan opportunity, measurement nan business you're getting into, and find whether it's nan correct caller for you.

This is what I do for a living: As nan CEO of iFranchise Group, my squad of consultants helps emerging and established franchisors grow. We spot nan insides of these businesses, and we cognize what makes nan champion ones activity — and nan worst ones fail.

In this article, I'll locomotion you, nan imaginable franchise buyer, done nan afloat process of interacting pinch a franchisor. Let's presume you've already done immoderate basal owed diligence: You've publication nan brand's Franchise Disclosure Document (FDD), interacted pinch its income aliases business betterment team, and talked to different franchisees. Now it's clip to get successful deeper — and we'll commencement by evaluating really nan franchise has been trading to you.

Related: I've Seen How Reckless Franchisors Can Ruin People's Lives. Here's How nan Best Franchises Grow, Find nan Right Franchisees, and Thrive Together

Image Credit: Pete Reynolds

The 'award' of a franchise

The champion franchisors "award" franchises. They are superior astir their committedness to quality, and only nan champion franchise candidates will qualify. Unfortunately, nan worst franchisors hide down nan relationship and usage it arsenic a income tool.

Once you commencement your franchise search, you will almost surely comprehend that a franchisor will "award" a constricted number of franchises successful your territory. That relationship connotes a highly selective process successful which a franchise territory is granted to nan winners of a agelong connection of prospective candidates. In fact, nan champion franchisors do return selecting franchisees very seriously. They admit that nan occurrence of their connection is founded connected nan bedrock of franchisee success. They admit that nan azygous astir important facet successful nan occurrence of immoderate franchise strategy is nan spot of nan franchisees that are brought into nan system. Successful franchisees make overmuch income, and truthful net overmuch royalties. They require small support and often put successful further franchise locations. They do not litigate. And they validate bully pinch caller candidates consenting successful nan franchise system.

While nan champion franchisors are genuinely selective, location connected nan line, small selective franchisors hijacked nan jargon, utilizing words for illustration "award" to create a consciousness of urgency successful their buyers. Instead of utilizing it arsenic a look for success, they conscionable usage it to thief adjacent nan sale. The extremity consequence tin beryllium that you are truthful tied up trying to triumph nan support of nan franchise action committee that you whitethorn unreserved unwisely into an investment. Thus, 1 of nan astir important rules of nan franchise income process is: "Always retrieve — they're salespeople."

Today, a emblematic franchise betterment serviceman (aka franchise salesperson) pinch a seven-to-10-year measurement grounds of occurrence makes a guidelines nett of $85,000 to $100,000, affirmative a committee of perchance $5,000 per sale. Good franchise salespeople tin easy double their guidelines nett each twelvemonth connected commissions. This tin motivate overzealous income tactics.

Of course, location are immoderate companies that really do judge successful nan conception of awarding a franchise. One awesome mall-based nutrient retailer, which launched its franchise programme successful 1989 and awarded astir 650 franchises successful its first decade of franchising, reportedly decided that successful bid to discourage overeager salespeople, it would compensate its betterment portion connected consecutive nett and not net commissions. Other companies personification incorporated nan franchisee's semipermanent capacity into nan salesperson's compensation. But astir companies, and astir salespeople, are still mostly commission-oriented.

Franchise salespeople are paid to coming a franchise opportunity successful nan champion light, truthful you petition to beryllium observant that you are not nan unfortunate of a peculiarly skillful salesperson. Choose nan franchise you want — not nan franchise personification different wants you to buy.

Related: For Franchisees to Succeed, They Need This Critical Support From Franchise Owners

Trust, but verify

The immense mostly of franchise betterment officers, contempt their financial motivations to sell, are honorable and reputable. They do not want to discarded you a franchise that will fail, since that's too bad for nan franchisor they activity for. And, truth beryllium told, erstwhile it comes to those less disreputable franchise salespeople, nan mostly of well-intentioned franchise salespeople are among their loudest critics. After all, nan salespeople who play accelerated and loose pinch nan rules wounded everyone's reputations — and they tin return income distant from franchises wherever nan imaginable mightiness really beryllium a bully fit.

As a franchise buyer, it's sometimes difficult to discern nan sales-driven organizations from those that are genuinely selective. While astir are honest, it is imperative that you protect yourself from those who attraction only for their commissions — not your success.

Please do not return this arsenic a licence to beryllium adversarial successful nan income process. One of nan things a bully franchisor is trying to ascertain is really bully you get connected pinch their squad — and group successful general. If you dainty your franchise salesperson for illustration a used-car dealer, you will apt beryllium shown nan door.

That said, beryllium alert is captious to a successful negotiation, truthful beryllium connected nan lookout for point that seems different successful nan income process. Specifically, coming are immoderate reddish flags that should make you very concerned:

→ Telling you point that is inconsistent pinch nan franchisor's FDD. The overmuch inconsistent it is, nan overmuch apt it is that nan alteration was deliberate.

→ Implying you will do amended financially than nan numbers successful nan FDD. There may, of course, beryllium morganatic reasons they mightiness expect you to make amended numbers (a precocious designed prototype cognition aliases a marketplace successful which nan franchisor already has a beardown presence, for example), but if they cannot explicate why you will do amended (or moreover better, show you a subset of numbers demonstrating why), you should workout a awesome woody of caution.

→ Implying that you will aliases should execute nan median numbers (or immoderate numbers, for that matter) successful nan franchisor's Financial Performance Representation (FPR) successful Item 19, which is almost ever strictly humanities and is not expected to beryllium a projection.

→ Steering you to talk to peculiar franchisees arsenic you spell done your validation process. If location is simply a bully logic to speak to those franchisees (they are each successful your chosen market, they are operating a caller prototype, they each started successful nan past 2 years), that mightiness beryllium reasonable. Otherwise, workout beryllium alert against speaking solely pinch cherry- picked franchisees.

→ Any high-pressure strategies designed to get you to adjacent should beryllium viewed pinch a diligent people of skepticism. Implying that a liking building whitethorn beryllium changing soon aliases that a territory whitethorn soon beryllium sold to personification different (even if true) is designed to unreserved your decision.

→ An overabundance of "puffery." Puffery successful nan income process often involves nan usage of unprovable superlatives and opinions alternatively than nonsubjective facts. If your franchisor claims to proviso "the champion support" aliases personification "the happiest franchisees," those claims tin beryllium difficult to refute.

→ How evasive is nan franchisor salesperson erstwhile answering your questions? Judge this carefully. While your first guidance mightiness beryllium to comprehend evasiveness arsenic deceptive, it whitethorn conscionable beryllium that nan franchisor is constrained by laws and/or champion practices arsenic to really they tin reply nan mobility you are asking. If a franchisor is avoiding your question, inquire yourself if location mightiness beryllium a morganatic logic for nan indirect reply you are receiving.

If you find yourself confronted by these tactics, an siren should spell disconnected successful your caput — but don't extremity your investigation. This mightiness conscionable beryllium a caller salesperson who has not been decently trained, aliases nan franchisor whitethorn not cognize really nan franchise is being represented. But nan overmuch prevalent these strategies are incorrect nan organization, nan overmuch apt this is an statement characteristic.

Remember: As a franchisee, you are only arsenic bully arsenic nan franchise strategy you beryllium to. If you subordinate a strategy that employs high-pressure salespeople, it is apt they personification recruited a number of franchisees who are not well-qualified.

Underqualified candidates are overmuch apt to fail. A deficiency of superior whitethorn root them to return shortcuts comparative to marque standards, causing worth astatine nan personification level to suffer. Failed franchisees are overmuch apt to sue, which tin root nan franchisor to spell nether — aliases astatine a minimum, portion nan franchisor to locomotion money to return sides against this litigation, depleting resources that they could different usage for franchisee support. Poor validation from these franchisees will make it overmuch difficult for nan franchisor to move successful nan future.

So if you consciousness you are dealing pinch a high-pressure franchise salesperson who has stepped complete nan connection of "truth-stretching" into axenic fabrication, tally for nan hills.

Also beryllium wary of franchisors who effort a spot excessively difficult to impressment you. Maybe they nonstop a limousine to premier you up astatine nan airdrome aliases return you to repast astatine an costly restaurant. They whitethorn net for your airfare to beryllium Discovery Day (that's erstwhile franchisees do a elaborate run-through pinch nan brand). They deterioration $1,200 suits and flash their Rolex watches arsenic they propulsion retired their Montblanc pens to mobility nan contract. While location is point incorrect pinch this per se, cheque that they don't personification their different manus successful your pocket.

Don't fto these aboveground specifications support you from looking beyond nan show to nan constituent of nan franchise opportunity and nan semipermanent narration you will personification pinch nan franchisor. But until you cognize for sure, support your manus connected your wallet.

Related: A Billionaire Who Operates More Than 2,400 Franchises Knows These Types of Franchisees Make nan Most Money

Meeting nan squad

While immoderate franchisors whitethorn clasp until Discovery Day to coming you to nan squad that will beryllium providing you support, galore relationship you a chance to meet and mobility and reply them while you spell done preliminary owed diligence. The sooner you tin speak to immoderate of these people, nan better, truthful you should avail yourself of this opportunity arsenic soon arsenic possible.

First, though, beryllium judge you understand their roles and responsibilities (ask your betterment officer) and who they study to successful nan organization. That should show you point astir organizational alignment and priorities while giving you an opportunity to spread circumstantial questions for these meetings.

Of course, you will want to cognize really each of these group will proviso support — either consecutive aliases indirectly — to you arsenic a franchisee. But beyond that, you will want to understand really you will caller successful pinch nan franchisor's ngo and culture. Unlike your franchise betterment officer, whom you whitethorn spot mini of aft you mobility nan contract, you whitethorn beryllium entering into a narration pinch immoderate of these group that will past for decades — truthful beryllium judge you for illustration them, aliases astatine slightest tin walk bully pinch them.

Remember, too, that pinch amended franchise systems, these interviews are too astir qualifying you arsenic a franchisee. Often, these group will beryllium asked for their sentiment astir your candidacy and your caller incorrect nan organization. So while you want to get your questions answered, you too want to beryllium judge that you mobility and reply well.

Related: I Was a Franchisee And Now I'm a Franchisor. Here's My Parting Advice to New Franchisees.

Discovery Day

The eventual extremity of everything nan franchisor has done truthful acold — nan trading brochures, nan ads, nan discarded and acquisition shows, nan follow-up calls — is to get you to a face-to-face meeting, Discovery Day. This meeting, which almost ever takes spot astatine nan franchisor's headquarters, is designed to discarded you connected why you should spell a franchisee, and, astatine slightest pinch bully franchisors, is too designed to beryllium judge you are a bully caller for nan franchisor successful position of knowledge, experience, attitude, and culture.

So really does it usually work?

You are typically invited to alert aliases thrust successful for this meeting. Most of nan time, you are responsible for your ain recreation expenses. Usually, you are asked to bring your spouse, life partner, aliases imaginable business partners pinch you. You should perfectly do so, sloppy of whether they personification an definitive invitation, arsenic you will petition their support not only to make nan past decision, but arsenic you move guardant pinch your business.

While location are galore variations arsenic to really Discovery Days are conducted and nan bid successful which things happen, they mostly personification nan pursuing elements:

→ Often, nan franchise betterment serviceman meets you astatine nan airdrome aliases astatine your edifice nan nighttime before. You whitethorn spell retired to repast pinch nan betterment serviceman and different members of nan guidance team, truthful they (and you) tin get a consciousness for really bully you will mesh pinch nan organization.

→ The pursuing greeting (or erstwhile you arrive), you are often fixed a circuit of nan franchisor's agency and introduced to various group who will proviso support to you arsenic a franchisee. If you personification not yet spoken to immoderate of these group connected nan phone, you will astir apt mobility and reply pinch them astatine immoderate constituent during your visit.

→ As information of this process, you whitethorn personification elaborate meetings pinch nan conception heads who will beryllium supporting you. These individuals whitethorn too show immoderate of this support (the IT personification showing really accusation is captured and cardinal capacity indicators are measured, nan existent spot personification detailing really sites are analyzed, etc.).

→ If nan franchise has beingness locations, you typically sojourn 1 aliases overmuch adjacent operating locations. During those visits, you whitethorn personification nan opportunity to study successful greater point really nan business runs and what your domiciled mightiness look like.

→ The franchisor apt makes a position astir nan institution (often pinch PowerPoint slides) that will proviso you pinch overmuch inheritance and an opportunity to inquire questions.

→ If you personification not yet reviewed nan FDD pinch your betterment officer, you spell done it constituent by item, and you're asked if you personification immoderate questions astir nan contents. The franchisor uses this opportunity to discarded you connected making an finance successful nan franchise and to explicate immoderate warts you whitethorn personification found.

→ You whitethorn personification further discussions astir really you intend to finance and tally your business.

→ You whitethorn beryllium asked to return a characteristic profiling proceedings if you personification not done this previously.

→ You should personification an opportunity to get answers to immoderate past questions you whitethorn have.

At nan extremity of nan process, you are told that nan assistance committee will reappraisal your accusation and make a past determination connected your candidacy soon. Often, you are told that nan franchisor will beryllium considering your application, and you'll beryllium fixed a timeline for nan adjacent steps. You whitethorn beryllium asked for a tentative commitment, assuming nan franchisor is consenting to move guardant pinch your candidacy.

To spread for Discovery Day, nan franchisor should proviso you pinch a elaborate schedule of nan sojourn successful advance. Once you personification that, you should create a database of goals and questions you'd for illustration to reside during nan visit. The overmuch prepared you are stepping into Discovery Day, nan overmuch you will get retired of it.

Many of nan astir revealing questions you should inquire your franchisor will beryllium based connected a thorough reference of nan FDD. If nan franchisor is progressive successful litigation, inquire astir it. If nan franchisor has a important number of franchise failures, inquire astir them. If nan franchisor has been progressive successful a bankruptcy — ask.

Beyond that, different questions whitethorn hap to you based connected your knowledge of nan franchisor, nan market, and nan competition. You will petition to recreation up pinch overmuch circumstantial questions, depending connected your individual and financial situation, arsenic bully arsenic nan peculiar franchisor you're consenting in.

Related: How Franchisees and Franchisors Can Master Their Relationship

Here are immoderate bully ones to commencement with:

1. Tell maine astir your competitors, peculiarly those operating successful my conception market. How will we reside them based connected your marketplace analysis?

2. What kinds of changes are connected nan entity for this concept? Marketing? Operations?

3. How are you readying to respond to nan competitory threat posed by existent competitors? Potential competitors?

4. What is nan biggest competitory threat successful nan marketplace? What is nan biggest opportunity? (Note: Pay adjacent attraction here. If you don't get a substantive answer, either you are being sold aliases you are dealing pinch personification who simply does not cognize nan answer. In either case, beryllium wary.)

5. Who is your customer astatine nan end-user level? What is happening to this market?

6. What are you really selling? (For example, connected 1 level, McDonald's is trading hamburgers. But connected another, it is trading quality, service, and worthy — delivered accelerated pinch a cleanable restroom.)

7. What has happened to nan marketplace complete nan past 5 years? To your marketplace share? To your strategy? What caller competitors personification surfaced, and why?

8. Who are your awesome vendors? Do they springiness position connected first inventory? What terms? What position do they proviso connected ongoing purchases?

9. What are you doing to unafraid nan champion prices connected products? Are you too negotiating pinch activity and instrumentality vendors (e.g., insurance, agency equipment, etc.)?

10. How overmuch do you locomotion connected investigation and development? How overmuch is that arsenic a percent of revenue?

11. What are you trying to execute pinch your advertising? Who is your agency? Why did you return them?

12. Are location immoderate plans to discarded nan business successful nan adjacent 5 years?

13. Where do you spot nan institution 5 years from now? Are you readying immoderate awesome strategical changes successful nan concept? Do nan owners strategy connected yet trading nan institution aliases passing it connected to their heirs?

14. What awesome changes has nan CEO implemented since he took complete (or successful nan past 3 years)? Is this information of an wide strategy?

15. How are you attempting to differentiate yourself successful nan franchise marketplace?

16. Are immoderate awesome changes to guidance planned?

17. What support do you proviso to franchisees that helps them build revenues during their first six to 12 months of operation?

18. In what ways do you cod accusation connected champion practices and banal them pinch franchisees successful your system?

19. What cardinal capacity indicators (KPIs) do you banal pinch franchisees? How is nan accusation shared?

20. Why are you not utilizing an FPR (assuming they aren't)?

21. I talked to a franchisee of yours, who told maine [whatever concerning aliases intriguing constituent you heard]. How do you respond to that?

22. What is your biggest franchise disaster? Why did it occur? What has been done to forestall a reoccurrence? What is nan punishment of nan franchisee involved?

23. What is nan champion constituent you tin opportunity astir each of your competitors? What are their strengths and weaknesses?

Related: 23 Questions to Ask a Franchisor When You Meet Face to Face

Discovery Day vs. Decision Day

While it is not communal practice, immoderate franchisors personification replaced Discovery Day pinch nan connection "Decision Day," and they will effort to usage nan tract sojourn to adjacent nan sale. They will proviso nan agreements astatine slightest 7 days earlier your sojourn truthful you tin sign. They whitethorn moreover preface nan gathering pinch point like, "If we are tin to reply each your questions to your satisfaction, will you beryllium caller to mobility astatine nan extremity of our clip together?"

Franchisors fig (correctly) that by getting you to perpetrate to a sojourn to their location office, you personification deepened your psychological finance successful nan franchise and are frankincense overmuch apt to bargain (much for illustration automotive dealers do erstwhile they get you to return a proceedings drive). In fact, I heard 1 franchisor speak astir this astatine an manufacture arena immoderate years ago; his connection was to beryllium judge to personification franchise prospects "bring their checkbook, truthful you tin discarded them while they are still successful nan ether."

A Discovery Day positioned arsenic a Decision Day is different reddish flag. You should beryllium tin to locomotion distant from Discovery Day and process nan accusation you've received. You should consciousness free to recreation up pinch nan franchisor's squad connected immoderate further questions that whitethorn personification arisen during nan visit. You should ne'er consciousness pressured to make a life-changing determination connected nan spot.

These meetings tin beryllium very exciting. And pinch nan portion of nan salespeople and an anticipation of signing, it is each excessively easy to get caught up successful nan moment. Don't fto that happen.

Related: 20 Questions Franchisees Must Ask When Interviewing a Franchisor

Choreographed tract visits

If nan franchise involves a beingness location, nan franchisor will astir apt propose that you sojourn a adjacent location to show you what their existent prototype looks like, proviso you overmuch point connected really it operates, and thief you amended understand nan domiciled you will play connected a day-to-day basis.

Look astatine this arsenic a first date: For a date, you would dress up and look your best, and for this sojourn nan franchisor will show you its champion information operating astatine its busiest time. If it's a edifice franchisor, for instance, expect that you will spell astir nan luncheon aliases repast hour. The information will beryllium swarmed pinch people, each of whom will beryllium happily buying nan merchandise you whitethorn 1 clip sell. It will beryllium hectic. As often arsenic not, nan information caput will beryllium truthful swamped she won't beryllium tin to talk. And you whitethorn deliberation (as nan franchisor wants you to), What a aureate mine!

While there's point incorrect pinch dressing up for a date, support your diligent skepticism. I was erstwhile asked to beryllium an maestro witnesser successful a suit (I declined) successful which nan franchisor would locomotion retired coupons for free nutrient redeemable connected Discovery Days. Needless to say, nan franchisees subjected to this trickery were not happy erstwhile nan agelong lines they saw astatine units ne'er materialized astatine their ain locations.

So erstwhile you sojourn operating units, support an unfastened mind. If nan location(s) you sojourn are owned and operated by nan franchisor, net peculiar attraction to nan standards they are maintaining. Take connection of nan following:

→ Is nan location cleanable and well-maintained?

→ Does nan worth of nan portion look high?

→ How bully do they prosecute pinch customers?

→ How bully do they prosecute pinch you if they are introduced during nan visit?

If nan franchisor doesn't do a awesome business successful each these areas successful nan locations they tally adjacent their location office, that is root for concern.

Related: The Role and Responsibilities of a Franchisee, Defined

The agency tour

If you are visiting a larger franchise institution connected Discovery Day, chances are they will springiness you an opportunity to locomotion done their offices and meet their group wherever they work. If your franchisor has a manufacturing facility, spread to don a difficult chapeau arsenic well. While you whitethorn not deliberation truthful astatine first, nan installation circuit is of captious liking to you successful making your franchise decision. Do not return it lightly.

As a franchisee, what you are buying is, successful effect, nan expertise of nan group you are gathering and nan civilization you are observing. So inquire questions. Ask to spot samples of what they will beryllium doing for you. If they are successful advertising, inquire to spot samples of caller promotional campaigns. If they are successful existent estate, inquire to spot tract packages.

Also get to cognize nan group a mini better. Ask them really agelong they personification been pinch nan company. If it has not been long, inquire them what they were doing before. Observe what they personification successful their offices and really organized they look to be. Even really they dress and really they interact pinch you will relationship clues astir their values.

It is important that you create a individual rapport pinch nan franchisor. After all, you will beryllium moving intimately pinch this institution — perchance for nan adjacent 20 years aliases more. From that standpoint, it is not important to recovered a bully moving narration pinch nan franchise salesperson — arsenic they will, successful each likelihood, beryllium agelong gone earlier you personification vanished your first decade pinch nan franchisor (or, if they are still around, will personification minimal narration pinch you unless you put successful different franchise). You should, however, consciousness nan franchisor exercised bully judgement successful hiring and training nan salesperson.

Another onslaught you mightiness return is to mobility and reply immoderate of nan franchisor's portion who were not astatine Discovery Day. One cardinal personification who whitethorn not beryllium astatine nan Discovery Day gathering is nan conception business advisor (or akin title), who would beryllium your main day-to-day relationship successful your marketplace erstwhile you open. If nan franchisor hasn't already suggested you speak pinch him aliases her, you should petition an mobility and reply by telephone aliases successful personification (assuming they unrecorded adjacent to you). Since you would apt interact pinch them overmuch intimately than pinch anyone different connected nan franchisor's team, it's important that you consciousness comfortable pinch them and consciousness they personification nan acquisition and accomplishment level to beryllium a valuable support resource. The conception business advisor apt supports betwixt 20 and 30 franchisees successful your region. When you talk to existing franchisees successful nan system, I highly impulse you inquire them really bully nan conception business advisor performs, and really overmuch worthy he brings to helping franchisees build successful businesses.

You mightiness too inquire to talk to group connected nan franchisor's marketing, training, aliases operations teams. Ask them what they for illustration astir nan marque and what they for illustration aliases don't for illustration astir moving for nan franchisor.

The bottommost connection is that you petition to consciousness comfortable pinch your franchisor, their culture, and nan squad they personification assembled. You've sewage a agelong roadworthy to recreation together.

Related: 3 Reasons Why Franchise Systems Are So Valuable

Be judge you cognize what's being tested.

At immoderate constituent during Discovery Day, you whitethorn beryllium asked to return a characteristic profiling test. For years, I personification been skeptical astir these tests. I personification seen successful franchisees recreation from each different walks of life, and nan astir successful appeared to personification mini successful common. Most were difficult workers and were consenting to recreation nan system, but I didn't petition an elaborate profiling proceedings to show maine that. Recently, though, I personification started to consciousness overmuch comfortable pinch these tests — though I do not ever beforehand their use, arsenic it is reasonably easy for group to crippled nan system.

I learned this almost by mishap erstwhile I said to a franchise salesperson who swore by psychological testing — but not for nan logic you mightiness think. He told maine nan tests didn't mean overmuch to him arsenic acold arsenic imaginable occurrence was concerned, but they did show him everything he needed to cognize astir really to discarded nan franchise! In essence, he was utilizing these tests to personification his prospective franchisees spot their ain basking buttons. Prospects were telling nan franchisor really they wanted to beryllium sold!

Over nan years, however, I've spoken pinch a number of franchisors who usage profiling devices successfully arsenic information of their franchise recruitment process. When utilized properly, they thief a franchisor amended understand nan imaginable strengths and weaknesses of their candidates arsenic business owners and members of a franchise system. Profiling devices are astir applicable for franchise systems wherever nan franchisee will beryllium actively progressive successful day-to-day operations. They tin thief nan franchisor (and nan candidate, if nan accusation is shared pinch them) spot nan franchisee's inclination toward attraction to detail, activity skills, activity ethic, and different factors that could beryllium a predictor of business success.

If you're asked to return a profiling test, I impulse you activity together to it arsenic agelong arsenic nan franchisor is consenting to banal nan results pinch you.

My individual ambivalence aside, I cognize a number of companies that committedness by them. One specified company, a sports-focused franchisor that I americium acquainted with, has connected juncture eliminated candidates from contention based connected proceedings results alone, which they consciousness powerfully has made them a amended franchisor. Some of nan champion franchise guidance recruiters personification utilized them efficaciously arsenic well. Plus, location is world investigation that has been done and processes that personification been established to assistance successful nan profiling of franchisee candidates. Many of nan consultants astatine nan iFranchise Group committedness by these tests.

So if you are asked to return a test, return it and reply it fairly. But cognize that while astir franchisors are astir apt utilizing them for morganatic purposes, astatine slightest immoderate franchisors and franchise salespeople are utilizing them for an separator successful nan income process.

Related: The 19 Covenants of a Standard Franchise Agreement

Be observant of nan gathering astatine a hotel.

Occasionally, you will tally into a franchisor that wants to get together for Discovery Day successful your hometown — perchance astatine a edifice aliases an airdrome lounge. While this tends to beryllium nan objection successful franchising, if your franchisor offers, by each means, return them up connected it. This gives you an opportunity to get to cognize nan franchisor without investing further clip aliases money successful travel.

Just don't substitute this gathering for nan recreation to nan franchisor's location office. You perfectly must sojourn nan franchisor's agency and meet their squad earlier you make nan past decision. Do not fto nan convenience of a conception sojourn aliases immoderate high-pressure income maneuver dissuade you. And if nan franchisor hasn't already encouraged this visit, that should beryllium a concern.

There tin beryllium reasons a prospective franchisor mightiness not want you to sojourn them connected their turf. Perhaps business isn't great, and they personification conscionable gone done a awesome layoff. Perhaps they personification very mini successful nan measurement of a support squad to show astatine nan moment.

Again, this is not an indictment of smaller aliases newer franchisors. Newer franchisors bring immoderate important advantages to nan table. With a caller franchise, you will apt personification nan opportunity to activity pinch nan laminitis of nan institution alternatively of personification pinch importantly small experience. The franchisor, if they are smart, will spot different accent connected your success, arsenic nan occurrence of early franchisees will dictate nan semipermanent occurrence of nan franchisor. You will beryllium tin to premier nan champion territories — and adhd territories earlier others subordinate nan system. And arsenic nan institution grows, early franchisees will often personification nan champion spot astatine nan array erstwhile it comes to providing input to nan franchisor and nan founder.

The constituent is not that you should only premier organizations pinch ample teams. It's simply that you petition to cognize what you are buying. So beryllium judge you footwear nan tires — successful personification — earlier committing to anything.

Related: Frantastic Collaboration: How Franchisors and Franchisee Associations Can Partner for Brand Greatness

The group mobility and reply

At immoderate constituent during Discovery Day, you will apt personification a group gathering pinch group from nan franchisor's activity team. These portion members will correspond astir of nan departments you'll interact pinch arsenic you create and tally your franchise.

If you received a elaborate schedule earlier Discovery Day, it hopefully included a database of nan group you'd beryllium gathering with. With that successful hand, I impulse you create a database of questions to reside pinch nan group who are responsible for circumstantial areas specified arsenic tract location, installation design, construction, training, marketing, finance, and wide franchise operations. If you bring that database into nan gathering pinch you, you'll beryllium prepared to airs nan correct questions to nan correct people.

The group gathering whitethorn statesman pinch nan franchisor's squad going done a strategy position of nan franchise opportunity and nan support you'd personification arsenic a franchisee. It often covers things like:

→ the market

→ the concept

→ competitive positioning

→ the franchise organization

→ support provided to you arsenic a franchisee

→ the process of moving guardant pinch nan franchise, should you return to do so.

This is simply a reasonably communal approach. If you've not seen that position before, inquire for a transcript earlier you leave, truthful you tin reappraisal it later aliases banal it pinch your advisers.

Related: 4 Essential Things to Know About Franchising

Following nan presentation, you'll apt personification a chance to probe deeper pinch nan portion members successful attendance. This is wherever your mentation will usage you. Don't beryllium acrophobic to inquire questions. This is your champion opportunity to speak pinch nan group incorrect nan franchisor's connection who would yet support you arsenic a franchise owner.

Remember that this mobility and reply is simply a two-way street, arsenic immoderate parties are sizing each different up for success. Either astatine this gathering aliases passim nan day, expect them to inquire you questions to further suffice you for nan franchise. Since they astir apt already cognize a batch astir you professionally from speaking pinch you connected nan phone, nan questions will apt beryllium geared toward getting to cognize you amended personally. And if you brought your spouse aliases important other, they will want to effect them successful nan reside arsenic well. They whitethorn inquire you wherever you spot yourself successful 5 years' time. Do you strategy to unfastened further locations? What gives you nan apical satisfaction? What is your apical accomplishment? How would you respond successful [X situation]?

The extremity coming is twofold. The champion franchisors want to beryllium judge you are a bully caller for nan organization. But they too want you to consciousness arsenic if you are interviewing for a position you whitethorn not get. In immoderate circles, it's called nan "negative sell" — making you discarded nan franchisor connected yourself, alternatively than nan different measurement around. Psychologically speaking, if they tin make you consciousness arsenic if you are competing for something, you are overmuch overmuch apt to want it.

At immoderate point, you will astir apt beryllium asked wherever you are successful nan decision-making process. They will want to surface what steps you personification taken successful areas for illustration investigating your marketplace and obtaining financing. And they whitethorn want to locomotion you done nan FDD 1 overmuch clip to reply immoderate remaining questions and uncover immoderate lingering objections you whitethorn have.

Use nan database of questions connected page 142. You don't personification to inquire each of your questions astatine Discovery Day. Some whitethorn beryllium owed during nan tract visit. Others perchance would beryllium amended erstwhile nan salesperson is going done nan FDD. And still others whitethorn beryllium champion during a follow-up telephone call. But inquire them. All of them. And inquire immoderate others you tin deliberation of.

Toward nan extremity of nan mobility and reply process, nan franchise salesperson will want to get a preliminary committedness from you. That will often recreation successful nan style of a question, specified as, "If you are approved by nan committee, erstwhile do you deliberation you'll beryllium caller to move forward?" You whitethorn beryllium told that nan franchisor's exertion committee will beryllium considering your exertion complete nan adjacent respective days and will proviso immoderate preliminary feedback connected your candidacy. Keep successful mind this preliminary committedness is conscionable that — preliminary. You are not signing connected nan dotted connection conscionable yet. And, arsenic opposed to nan hard-sell Decision Day strategies you publication astir earlier, this is meant to gauge your level of committedness — not to make you perpetrate connected nan spot.

The franchisor won't beryllium done pinch you erstwhile your in-person sojourn is over. With astir well-functioning franchise organizations, location will beryllium a debriefing aft Discovery Day, wherever nan group who met you will proviso their input connected really bully you would do arsenic a franchisee. In immoderate organizations, a azygous "no" ballot whitethorn beryllium tin to jeopardize your candidacy, but successful most, nan business proprietor weighs their input and yet makes nan decision.

Some old-school franchise salespeople may, astatine this point, usage nan exertion committee arsenic an opportunity to play bully cop, bad cop. By claiming to consciousness affirmative astir you and your application, nan salesperson (the bully cop) tin impulse you to move accelerated earlier nan bad bull (the committee) gives distant your territory to different franchisee. The committee is faceless, truthful it gives you nary 1 circumstantial to dislike. It too represents a higher authority whose demands you supposedly must strive to meet. Rest assured, however, that whenever portion is applied, it will recreation from nan committee.

These tactics, for nan astir part, went retired of favour astir nan aforesaid clip arsenic nan equine and buggy, but if you brushwood them, do not fto them push you into a hasty aliases unwise decision.

Related: The Real Cost of Franchising Your Business

Evaluate information-sharing incorrect nan franchise system.

An important rumor to reside during Discovery Day is really bully champion practices are gathered and disseminated passim nan franchise system. Owning immoderate business is simply a challenge, but a franchise strategy tin lessen that business — if nan franchisor has established bully systems for collecting and sharing champion practices among franchisees. The spot of nan strategy is defined by nan firm knowledge of nan franchisee community. If you arsenic a franchise proprietor deficiency entree to that knowledge, nan franchisor's worthy proposition diminishes substantially.

In a high-functioning franchise system, nan franchisor gathers franchisees' financial accusation and shares nan results done a web-based benchmarking platform. A franchisee should beryllium tin to log into that level and spot really his aliases her business compares to different franchisees by geography, spot successful nan system, gross volume, etc. There should too beryllium a exertion hub wherever franchisees tin entree champion practices successful marketing, sales, worker retention, and different cardinal factors that thief each franchise location succeed.

In your group gathering pinch nan franchisor's team, inquire them what systems they've put successful spot to stitchery and banal this information. Also inquire whether they banal their company-owned accusation pinch franchisees. If they tally patient locations, they should banal that accusation arsenic well.

Related: What Is Franchisor Financing? Here's Everything You Need to Know.

Cool off.

After a long, grueling Discovery Day, you're yet connected your measurement home. But you can't relax yet. You now personification nan accusation you petition to find — aliases astatine slightest astir of it. And you still personification activity to do. Your first bid of business should beryllium to archive your meeting. Since you will apt beryllium gathering pinch aggregate franchisors, you will petition to support measurement of each these details. While it does not petition to beryllium lengthy, you should astir apt note:

→ who was present

→ when and wherever nan gathering took place

→ what levels of support were discussed

→ what promises aliases commitments were made by either party

→ any accusation that will thief you create your financial exemplary

In nan process of documenting these conversations, you will apt recreation up pinch further questions you will want to jot down for your adjacent telephone pinch your betterment officer.

Finally, fto nan glow deterioration off. Look astatine immoderate different opportunities aliases conscionable return a play disconnected from your search.

A cooling-off play isn't conscionable a bully thought successful nan abstract; it tin protect you arsenic well. When nan Federal Trade Commission primitively announced nan "Franchise Rule" requiring franchisors to proviso prospective franchisees pinch cardinal data, nan regulators built successful a cooling-off play to forestall fast-talking salespeople from closing unsophisticated prospects earlier they had vanished their search. Twenty years ago, it was not uncommon to coming nan FDD (which was past called nan Uniform Franchise Offering Circular, aliases UFOC) astatine Discovery Day, sending prospects location pinch elaborate written accusation aft this first meeting. Today, pinch nan advent of physics disclosure, you will almost ever personification received nan FDD anterior to your visit. And if location are nary changes to nan franchise agreement, nan mandatory 14-day waiting play whitethorn personification already expired by nan clip you arrive.

Related: What You Really Need to Look for When Considering a Franchise

Don't conscionable footwear nan tires; return it for a spin.

Finally, effort putting yourself successful nan domiciled of a franchisee for a week aliases truthful and spot really bully nan "job" suits you.

In fact, immoderate franchisors (McDonald's and Domino's among them) require you to activity successful a franchise aliases patient location earlier being awarded a franchise. Sort of for illustration Navy SEAL training for franchisees, this proceedings tally is arsenic overmuch astir giving their franchisees a chance to ringing nan doorbell arsenic it is astir nan franchisor wanting to spot whether they tin hack it.

Of course, astir franchisors do not personification this built into their income process. But that doesn't mean you can't put yourself done your ain type of SEAL training. Perhaps you tin get a business moving for a franchisee. Maybe you can't return nan clip to do this, aliases perchance location are nary units adjacent to wherever you live. But if you want to get a bully consciousness for what you are getting into, you mightiness want to inquire your franchisor if they will fto you effort earlier you buy.

If you consciousness you personification a peculiarly beardown rapport pinch a franchisee successful your area, perchance (with nan franchisor's permission) you could relationship to activity for a week aliases 2 for free. The franchisee gets free labor, and you get immoderate penetration arsenic to whether you are trim retired for nan role.

Some franchisors whitethorn frown connected this practice, perchance fearing you are trying to get their intelligence spot successful bid to compete pinch them. If this is nan case, you mightiness alternatively find ways to simulate their activity environment. For example, you mightiness locomotion immoderate clip astatine competing sites: Get location erstwhile they unfastened and enactment arsenic agelong arsenic you tin each morning. In your calls pinch franchisees, locomotion clip talking astir what a emblematic clip successful their life is like. And talk to independents and competitors arsenic well. Paint yourself into nan picture.

Be judge you cognize what you are getting yourself into. A janitorial activity franchise mightiness sound for illustration a great, low-cost business opportunity. But it whitethorn too mean you will be

working precocious nights and sleeping during your children's changeable games. A barroom and grill mightiness sound for illustration awesome fun, until you admit you will beryllium unfastened each clip of nan twelvemonth and distant from your family connected astir holidays.

Related: 5 Must-Do Steps to Evaluate Franchise Opportunities Like a Pro

After each that, you decide!

At this point, your investigation should personification fixed you a awesome woody of inheritance connected nan franchises you are considering. Hopefully, you too personification tin penetration to find whether nan business is simply a bully caller for you.

You personification ideally recovered 1 (or perchance overmuch than one) business that is well-suited to your talents and that you judge you would enjoy. Likewise, you personification assessed nan consequence associated pinch nan task and are comfortable that you tin negociate it. And finally, if you personification gotten this acold pinch 1 aliases overmuch franchisors, you judge nan squad they personification assembled and nan strategy they personification created will work.

But earlier signing connected nan dotted line, location is still overmuch activity to do.

The acerb proceedings for your past determination must spot an introspection of your projected financial capacity and an study of whether nan return you expect from your difficult activity and your finance will beryllium worthy nan consequence you will incur. If you've dug dense pinch nan franchisor, and are happy pinch what you've learned, past this number-crunching is worthy nan clip finance — and will hopefully output a lucrative determination for all.

Related: 'Franchise Sales Rarely Happen by Accident', These Are 7 Factors to Consider successful Franchise Lead Generation

This article is excerpted from Mark Siebert's book, The Franchisee Handbook, which is simply a elaborate line to vetting and buying a franchise. Get it astatine entrepreneur.com/bookstore.