What Should I Ask On A Visit With A Franchise Owner?

These questions have been modified from a list that Wild Bird Unlimited uses to help their franchise candidates. It is one of the better questionnaires out there. Besides looking at the financial statements to get an idea of the store's earnings, the candidate should not only listen and take notes on verbal answers given by the owner but also use the question to seek for written documents (concrete evidence).

• Describe what you do during a typical day at the store. (Good excuse to look at the daily operations schedule and discuss it.)

• What do your customers say to you about your store? (Take a look at the customer feedback forms if the franchise uses them.)

• How loyal are your customers, and how do they show their loyalty? (This is an opportunity to look at the customer list and sales reports, how big are the biggest and how frequently they buy.)

• What help did you receive from your franchisor in selecting your site and negotiating your lease?

• Describe the training you received from your franchisor before you opened your store.

• Describe the marketing programs your franchisor provides throughout the year. (Any list that can show you the programs offered in the area?)

• What programs has your franchisor offered to help you succeed?

• Describe the relationships you have with vendors through your franchisor. Can you get the best products at the best prices? How does the system work? Can you get product and services for your region in a timely manner?

• What new products and/or services did your franchisor offer to you this year, and how did you learn about these items?

• What relationships has your franchisor developed with strategic partners? How have these relationships helped your business?

• Describe the success you've had with private-label merchandise.

• How has your franchisor helped you develop a pricing strategy, and does it meet your profit margin requirements?

• What type of assistance does your franchisor give you in interpreting financial statements and improving your performance?

• Describe the assistance you receive from your franchisor in creating professional displays and merchandise presentations.

• What kind of suggestions did your franchisor give you to help you create the right atmosphere in your store?

• How does the franchisor's staff help you be more competitive? How often do the field operation reps visit?

• What type of Human Resources assistance have you received, and how has it benefited your operation?

• How does your franchisor communicate with you to make you aware of new retailing concepts, new products, business ideas and other information you need to do your job to the best of your abilities?

• Do you belong to the Franchisee Advisory Council, and, if not, how do you voice your opinions?

• Would you purchase another franchise, and why? And, do you recommend that I purchase one?