Buying a Franchise!
What questions should I be asking franchise systems?
Are you a member of the Canadian Franchise Association (CFA)?
How many years has the franchisor been operating? How many units do they have overall?
How does the franchisor choose franchisees? How are qualifications reviewed?
What makes the franchisor's product or service unique?
What kind of support and advice, including advertising, marketing and promotional assistance, does the franchisor provide franchisees?
Does the franchisor choose the location or does the franchisee?
Will you be provided with a disclosure document? Does it comply with provincial franchise laws or CFA's minimum disclosure requirements?
How much is the initial franchise fee?
What is the anticipated period of time between start-up and profitability?
What are the future plans of the franchise?
Investing in a franchise is a major decision. Not every franchise will be right for every individual.
Here are a few questions to ask franchisors when investigating if they are right for you: