3 Questions To Ask Before Becoming a Franchisee

Sometimes, the best advice can come just a little too late. When signing on to be a first-time franchisee, there are several unknown factors that come in to play—whether that be in regard to operations, support, training, or anything else. Before taking the leap, candidates would be wise to heed the advice of more experienced franchisees in order to avoid making unnecessary mistakes. 

We talked with experienced franchisees to find out the questions they are glad they asked before signing their name on the dotted line.

1. “Is the franchise systematic and easy to replicate?”

“When I signed on with SoBol, I made sure it was a concept that was proven and doing well across the board,” said Chino Hills, California franchisee, Shawki Mahfouz. “Before becoming a franchisee, candidates should guarantee the brand has all of the systems in place to help them succeed. If they do, the concept should be easy to replicate.”

During the validation and Discovery Day process, candidates can find out about the expertise and experience of the executive team to ensure that sufficient training, marketing and operational support will be offered by the brand from day one. 

Another SoBol franchisee, Montuh Shah, also mentioned the importance of a strong infrastructure and proven business model. “Make sure the brand has a system in place to help new franchisees solve problems,” he said. “Knowing you can rely on the franchisor 100% puts great relief on the franchisee during the already-stressful process of opening and difficult first months of operation.”

2. “Is the brand supporting growth?”

New franchisees should do their due diligence when it comes to researching the success and year-over-year growth rate of the brand and its individual franchisees. “Instead of just asking about growth, I would recommend asking about the competition within the segment and how the brand rates itself against its leading competitors,” said Shah. “If the concept is failing to differentiate itself within a saturated market, it may be a sign that the brand isn’t primed for growth or creating opportunities for expansion.”

In addition, candidates should be confident that the brand is supporting franchisee growth initiatives with a strong leadership team, continuing to innovate and prioritizing franchisee profitability and unit-level economics. 

“One of the first things we noticed about SoBol was that all of its franchisees on the East Coast were doing well and growing rapidly,” said Mahfouz. “That was comforting before signing on for a location on the West Coast because it was clear that the concept had legs and that people were responding well to it. We knew the brand was positioned for expansion.”

3. “Do franchisees usually get involved in the community?”

Distracted by the big picture, many franchisees fail to ask how the brand is going to support local marketing or encourage community involvement. Since the majority of franchisees are local community members themselves, this can be a deal-breaker for many candidates and should be discussed in the validation process. 

“A big reason why we connected with SoBol was the brand’s strong presence on the East Coast,” said Mahfouz. “We knew we wanted a brand that would allow us to be involved with local high schools, churches, and businesses in order to get our name out there as much as possible. If it is important for you to be a family-friendly community partner, make sure the franchisor is on the same page.”

By preparing these types of questions before signing on, prospective franchisees will be more equipped to make informed decisions about the franchising opportunity at hand and avoid looking back with regrets.