Franchise Sizzle!
The Franchise and Biz Op Blog

Some franchises don`t accept just anyone. In fact, you`ll find that many franchises have a long list of requirements for potential investors. At first glance, this might seem a bit odd, after all, if you have the money, you should be able to get into the business, right? Wrong.

The truth is that a good franchise will want you to succeed. After all, if you make it big, so do they! But if they let anyone and everyone with a checkbook set up shop, then the brand not only is diluted, but many of these franchisees will fail and make the business look bad. Not to mention, they will end up earning very little money off their franchisees.

A franchise that is picky about who they let invest is probably going to be more successful than others. They are looking for just the right candidate . . . someone who has what it takes to be successful in this business and who will keep the franchise name alive and well.

When a franchise has requirements, it means that they aren`t going to sell out. You can rest assured that if you are chosen, it`s because they feel that you will succeed in this business. Your training will be aimed at providing you with the tools necessary to get out there and make money, and lots of it!

When you are researching your franchise opportunity, it´s a good idea to not only speak with the franchise, but also with franchisees. This will give you a good idea of whether or not the business is for you. You could go for hours asking questions, but here are the five most important ones to ask current franchisees.

How long have you owned your franchise? This will give you a good idea of whether or not the person can actually answer your questions. Someone who has only been in business for a couple of months will not have the insight that someone who has been with the franchise for six or seven years will.

Are you satisfied with the franchise and the service/training provided? The answers to this question will let you know if the franchise has a good working service and training policy. If everyone has a similar issue with them, you can be sure that you will have the same problem and you´ll need to decide if it is still worth it to you to invest.

How long did it take to break even? This won´t necessarily tell you if you will earn well or not, since every business is different, but it will give you an idea of whether it is possible to make your money back or not.

Were the costs incurred similar to the ones listed in the original disclosure document? This will let you know if the franchise is underestimating costs, something that could drastically affect you when it comes time to set up your franchise opportunity.

If you had to redo it, would you still choose this franchise? Find out if they are really happy with the franchise. Most people will have some part of the business that they don´t enjoy, but if those franchisees you meet are consistently down on the program, you may be better off just walking away.