5 Questions to ask before investing in a Franchise
Education is said to be one of the noblest professions in society, which not only transforms lives. It also provides the best franchise opportunities in India with a profitable business for many entrepreneurs. Stepping into an education sector in a business perspective is something which profits everyone. There is an increasing demand for qualitative and actively working franchisee. This is because of the expanding population at rapid speed, with the advance minds. Are you in a plan to start your own business in the Educational sector? Do you think about the opportunities? Then obviously, a franchise in education is a perfect choice, its high time to get started.
Here is an in-depth list of questions for enquiring in a prospective franchisor during the research process.
- What are the criteria for a franchisee?
Typically, Franchisor has a list of personality traits and qualifications which have to fit perfectly with their brand. It’s essential to research on those criteria and determine at the initial stage whether you feel your skill set and personality go good with the system.
Who were the founders? Do you have a similar passion and skillsets for the industry? What was their motivation for starting the franchise business? You have to identify with the fundamentals of the business more than finding the perfect match.
To become a successful business, you and your Franchisor should be like-minded people. Either if you are getting franchise rights for a huge brand nor if you are partnering with a developing brand, the first question you must ask to your Franchisor is why you both should join hands as Franchisor and franchisee?
- Years of experience
Annually, we could see several franchise opportunities are coming into the education sector for the first time. But unfortunately, not all of them are successful. Of course, as a prospective franchisee, you should be clear with years of franchise experience before associating with a brand.
With more number of years, we could have better market stability and goodwill for the brand. There are many franchise opportunities in India, but not all of them are successful. However, you can still find profitable franchise opportunities with STEM educators like ScienceUtsav. They have built their brand reputation for more than a decade. Hence one should check for the span of operation and franchise experience of the prospecting preschool. You might be taking a full risk with a new franchise, but it’s quite easier & less expensive to purchase from a new franchise.
Like in any business, both success and failure are probable, when it comes to investing in a franchise business, be it an established brand or a new franchise or Low investment franchise. Thus, explore how stable the franchise you are investing in is and what is its future.
- Explore your support system
Support is one of the significant benefits of buying into a franchise system. Be Frank to ask your Franchisor at the earliest about the areas of support they will be offering. Most of the franchisors will provide training & marketing support. Additionally, ask your Franchisor if they will offer any other help apart from the initial training. Also get to know if they will assist in lease negotiations, site selection, etc. Ensure you are content with the kind of support offered.
- How do you handle Disputes and Disagreements?
No one wishes to experience a conflict of interest with their Franchisor, but, disagreements are bound to happen when two live in the same house. Hence, there are many chances of disputes between you and your Franchisor. So, you should know the best way to resolve it. Make a clear note on how they will handle any such future disagreements and who will have the upper hand in that. Furthermore, it’s more important to understand if the Franchisor has previous disputes, or any pending lawsuits, with other franchisees.
- Investment questions
Once you have decided with your Franchisor, you should have many questions to ask, and one among that is about the investment because usually there are many hidden charges which are said at the later stage. It is applicable for Low investment franchise as well.
A comprehensive due diligence examination is a critical step in the process of purchasing a franchise, and this has to be ensured if you are making an informed decision before agreeing.