That's the single most important question to ask franchisees before you invest your money in a franchise.
It's not the only important question
Granted, there are other "important" questions,and I tell you what they are in my free report: 92+ Questions To Ask Before You Invest In A Franchise, which you get automatically when you subscribe to my blog.
But asking franchisees if they'd do it all over again, knowing what they know, provides some of the best insight to help you make a decision before you invest your money.
Not all franchisors want you to ask it
To be sure, some franchisors don't like it when you ask that question! If most of the franchisees answer, "No," I can't imagine too many of you saying "Yes" to that franchisor. On the other hand, people invest in franchises for all kinds of reasons - common sense doesn't always prevail!
Also to be sure, some franchisors hope and pray you'll ask that question because they know their franchisors will answer enthusiastically, "Yes!" And when that happens, your franchise sale is imminent. Of course, that doesn't mean the sale should occur - but franchisee validation is one of the most convincing variables in franchise sales. If the existing franchisees say they'd buy it all over again, what could be wrong with the franchise?
Do franchisees like to prospects?
Prospects often ask me if I think franchisees lie. "Will they say Yes even when they really mean No?"
My response: "Of course!" That's why it's so important for you to talk to at least several franchisees before you invest your money. I think it's a good idea to speak to at least a dozen franchisees.
How many franchisees should you talk to?
What if the franchisor only has a dozen franchisees?
Easy! Talk to all of them!
Six steps to help you question franchisees
Here are six steps to follow when you question franchisees:
- Ask them all the same questions. Don't ask different questions because then you won't be able to compare answers.
- You probably won't have time to ask more than a couple dozen questions. Franchisees are busy people and may only speak to you by phone. Select your questions wisely. Make the questions pertinent to you and your situation.
- Talk to franchisees who come from a background similar to yours. If you're a teacher, talk to franchisees who used to be teachers. If you're investing in an urban location, talk to franchisees in urban locations.
- Don't be afraid to talk about money. I know it's not polite to ask people how much money they make, but the franchisees know that's one of the reasons you're questioning them. Tell the franchisees what you expect to earn and in what time frame. Ask them if that's realistic. (My free report, mentioned above, provides more guidance on this topic).
- Visit at least one franchisee. Go to work for a franchisee for a couple of weeks or in the evenings or weekends. Experience for yourself what it's really like to operate the franchise. You might discover there are aspects of the business that don't appeal to you!
- In addition to franchisees, talk to vendors who provide products and services to the franchisees. How do they see the business? Growing? Declining? Of course, you'll also question the franchisor and then discuss all the details with your accountant and franchise attorney.
Shopping for a franchise is hard work. But it's much easier when you know which questions to ask. Begin with the most important question!
John_P._Hayes,_Ph.D.
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