I see a lot of franchising prospects who are considering purchasing a franchise. In addition to seeing a lawyer and an accountant it is essential that a prospect also engages a franchising expert to review the franchise operation and the system.
Irrespective of the advice that a professional provides to the prospect, the most important and crucial recommendation we make is that the prospect should speak directly to the existing franchisees.
A Franchisor is obliged under the Franchising Code to provide the information of all current and past franchisees.
This vital conversation can be wasted if the correct type of questions are not asked in a particular way.
So what are some of the questions that should be asked of an existing franchisee?
This list is not complete as there are questions to be asked that are specific to the type of franchise business, but they do go a long way to hear the truth from "the horses mouth".
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