How to Prepare for Meeting a Franchisor: What To Ask and What To Look Out For

If you are new to franchising, the process can feel overwhelming. However, meeting with the franchisor and corporate team of a prospective brand you are considering is a great opportunity to learn everything you need to know to understand exactly how your experience as a franchisee will go. That is, if you know what to ask at that meeting.

Jerry Akers is well-versed in all things franchising and advises franchisees on how to get the most out of these encounters. He serves as chairman on the International Franchise Association (IFA) Franchisee Forum Board, National Federation of Independent Business State Leadership Council, Iowa Board of Cosmetology Arts and Sciences, and Great Clips* Advisory Board. In addition, he is a franchisee, with 34 Great Clips locations across Iowa and Nebraska, as well as five The Joint Chiropractic clinics. 

1851 Franchise spoke with Akers to glean his expertise on how potential franchisees can prepare to meet a franchisor for the first time, what questions they should ask and what red flags they should look out for. 

How To Prepare

To prepare for your meeting, conduct as much research as possible beforehand. Akers suggested visiting your nearest location of the franchise in question, “Undercover Boss” style. When you’re there, you can ask employees what they like about the business and get a feel for whether or not things are going well. You can also get a glimpse of how other consumers view the brand. Local Google reviews are also a credible place to peruse.

“Figure out what the customers are saying about them because that's ultimately the deciding factor in whether you're going to be successful or not,” he said.

Not only should you get to know the brand you are considering, but you should also get to know their competitors, especially the ones directly in your area. This will give you a greater understanding of the market your potential business is situated in and who you are up against. If you are well-informed about the brand, this will set you apart from other prospective franchisees. 

“Know your stuff so you sound educated on the prospect not only to educate yourself for a great decision but also to stand out from the crowd of people considering that franchise,” explained Akers. 

Working With a Franchise Consultant

If you decide to work with a franchise consultant to help narrow down your search, you’ll need to know the best questions to ask them. 

“Since a consultant handles many brands and gets paid for selling one, put them to the test,” explained Akers.

Akers advised asking the following questions to a franchise consultant to weed out any bias and prepare yourself for the next step of meeting a franchisor:

• Why do you suggest this brand over others you handle? 
• Can you compare and contrast similar brands with pros and cons?
• If you were in my position, which would you choose and why?
• What insight can you give me to prepare for my validation calls, Discovery Day and conversations with this franchisor?

Once you have made your mind up about a potential brand you’d like to pursue business ownership with, your next step is getting to know the franchisor and corporate team. 

What To Ask the Franchisor

The first thing to keep in mind is that the relationship between a franchisee and franchisor should be mutually beneficial. The franchisor wants a successful franchisee because that supports the brand and the overall franchise. The franchisee wants a successful franchisor who provides them with brand recognition, along with a positive reputation and support in finding personal success. In theory, they will only accept a franchisee that they believe will be successful.

However, they still have a quota to meet. This means that while they are unlikely to lie, they may sugarcoat their processes if they think you’re a good catch. 

“They're still trying to sell something,” explained Akers. “If they look at you and feel you can be successful, then too much information could dissuade you. You may become successful in spite of yourself.”

While you might be successful either way, you of course want to make sure that you completely understand what the franchisor is offering so you can determine whether it meets your needs. Otherwise, you may find success but not fulfillment. 

It’s also important to speak to a variety of people on the corporate team, as they will support you in different areas of your business.

“When you go to Discovery Day, you're going to get a chance to ask the vice president of different departments how that department supports you,” said Akers. “If you come from a corporate background, like a lot of us do, there may be things you're good at already and other things you're not very good at, so spend a ton of time with the people in the Discovery Day who are going to support you in your weaker areas.” 

Get further clarity on how the corporate team plans to support you with these kinds of questions.

• What in-depth training do you give me on how to run this business?
• Besides the day-to-day exercises, what training do you provide on the business side?

Be sure to show off all of the research you’ve done. Asking insightful questions, and using franchise terminology, shows your franchisor you are educated, which benefits both of you. 

“Asking questions that are very pertinent because you've educated yourself and using some of the terminology from franchising will teach you a lot of things really quickly,” said Akers. 

Using your research to inform your questions will also encourage the franchisor to give more detailed responses, as it shows you already have a firm grasp on the basics and are ready to delve a little deeper.

Red Flags

When you meet with the franchisor and the corporate team, there are a few things to be wary of, which could be potential indicators that information is being withheld or perhaps that the team is not fully organized.

Akers suggested being on the lookout for any avoidance tactics. If you ask a question and don’t get a direct answer, that could be a red flag. He also advised being wary of flowery sales language that sounds nice but doesn’t actually provide a clear explanation. Once you move on to making validation calls and speaking with franchisees, continue to look out for these same red flags, as they could be indicating that franchisees are ill-informed or lacking support. 

Not Just a Business In a Box

While you do want to be successful as a franchisee and that often means selecting the right brand, don’t place all of your trust in the brand and simply walk away. Ensure you are choosing an industry or brand that you are passionate about, so you feel motivated to stay involved.

“If you're not engaged, in the worst case, you won't be successful because you literally bought the business, hired a general manager and then walked away from it,” said Akers. “Then, it's the general manager's business, and they don't have the same vested interest that you do. A warning to you as a prospective franchisee is that you cannot fully buy into the business in a box concept. Yes, you're buying a proven system. You're buying the logo. You’re buying some support. But it still comes down to you and what you're going to do to make that business successful.”