Seven homework lessons for prospective franchisees
Do your own due diligence before inking a franchise deal
It’s kind of a big deal to enter into a franchise agreement. There are hours of interviews, franchise disclosure documents, reams of financial statements, and days of discovery.
And that’s largely for the benefit of the company determining whether it wants to sign you on as a franchisee.
But it’s advisable to turn the tables somewhat, and see whether you want to work with them.
Here are seven things to do before you enter into a franchise agreement, be it with Tint World® or any other national franchising operation:
- Contact other franchisees within the company and ask about franchise support, especially getting the store up and running.
- Inquire about the franchise’s marketing and advertising plans, and ask other franchisees how effective they are, especially if you are required to stick to a company marketing template.
- Make sure you know what any upfront fees are covering, including legal and CPA services.
- Ask the franchise you are considering courting whether they have testimonials and client success stories they are willing to share. They should, and if they don’t, that could indicate dissatisfaction among franchisees.
- Examine the all-around track record of your company. A lot of information should be available in the franchise disclosure documents companies are legally required to release. Look for litigation; what states they are allowed to operate in; and the overall franchise approval and closure rates.
- Talk to customers or clients of the franchise you are considering. How would they rate the company? Were they pleased with the services received?
- Stalk your company’s online presence and reviews to gauge client satisfaction. Reviews on Google, Yelp, Facebook and the Better Business Bureau website should give you a feel for whether customers are happy with the franchise.
The franchise world is not for everyone. It involves a substantial investment and extreme vetting on both sides of the negotiating table. So make sure exactly what you’re signing up for when you ink that franchise agreement. It’s kind of a big deal.
For information on franchising opportunities within Tint World, a national leading provider of window-tinting, vehicle accessories and electronics, download our franchise kit today.