Questions from Franchise Applicants

Here are some sample questions Franchise Applicants usually ask Franchisors:

  • What is the total investment we are talking about; beside of Franchise Fee, rental deposit and utility deposits, such as renovation, equipment, initial investment in merchandise, grand opening marketing, etc.
  • What products have to be purchased from Franchisor?
  • What kind of training do you provide? If so, when, where and for how long?
  • Do we have to pay for the training? In most cases training fee is included in the Franchise Fee except Lodging, transportation and allowances for Trainees.
  • Are we entitled to continuous training throughout the term of the Franchise Agreement? Normally yes.
  • Will you provide us an Operational Manual? Every professional Franchisor provides an extensive Operations manual
  • Will the Franchisor provide advertisement or does have any advertisement schemes, such as National Advertisement Fund, Local Store Marketing or Co-op advertisements? Most Franchisor have Grand Opening Marketing and LSM, but National Advertisement Fund only once they are operating on a national scale.
  • What continuing service do you provide after starting the operation?
  • What are the terms for renewal and is there any renewal fee to be paid? Normally there is a smaller fee as renewal fee charged.
  • Payment of initial franchise fee? Usually to be paid upon signing of the Franchise agreement.
  • When do we pay royalties? Most franchise systems have monthly royalty payments.
  • Shipment of goods, who pays for it? Particular for franchisees outside the delivery area of Franchisor, shipping is at the expense of Franchisee.

Can I sell my franchise if I want to migrate or lost my interest in the business? Yes definitely, every Franchise can be resold by a Franchisee