The best way to purchase a successful and profitable franchise is to ask the right questions and do your due diligence. Unfortunately, it can be difficult to know which questions to ask without the expertise that comes from prior industry knowledge. To help aspiring business owners, the International Franchise Professionals Group (IFPG) has compiled a list of some of the most frequently asked questions about investing in a sandwich franchise.
Whether you are looking to acquire an existing business or have the desire to launch a brand-new venture, these questions are essential if you are considering an investment in a sandwich franchise.
Questions About the Location of the Franchise
Many franchisors are willing to help franchisees determine the best location for their business. The following are some of the most commonly asked questions about choosing a location for a sandwich franchise:
* What type of locations do other franchisees have success with?
* Are there any restrictions or zoning laws that may prevent me from opening a franchise in certain locations?
* What demographic information do you have about certain locations?
Questions About Finances and Fees
Before investing in any type of franchise, you need to have a clear understanding of the fees and requirements associated with being part of the franchise network. Ask the following questions to ensure that you are making a well-educated decision:
* What is the total investment required to launch my sandwich franchise?
* What type of equipment do I need to own and operate the franchise?
* What are the ongoing fees associated with the franchise?
* How much will I have to pay in advertising and marketing fees?
Questions About Contract, Training, and Support
It is important to understand the details of any franchise contract before signing it. Furthermore, you want to make sure that you will receive adequate training and support throughout the life of the franchise. Ask the franchisor the following questions to ensure that your needs will be met:
* What is included in the initial training program for new franchisees?
* What type of support will I receive from the corporate staff?
* Do you provide any follow-up training for existing franchisees?
* How long is the initial contract and what are the renewal options?
Questions About the Franchise’s Success
Before committing to any type of investment, you should understand the potential success of the franchise in question. Even the best franchises can fail to succeed if the location is wrong or if the timing is off. Ask the following questions to determine the potential success of the franchise:
* What type of success have franchisees experienced since the launch of the franchise?
* What is the average return on investment for this type of franchise?
* What type of financial performance should I expect within the first few years?
Taking the time to research an investment in a sandwich franchise is the only way to ensure that you purchase a business that is viable and successful. When asking questions, it is important to keep in mind your own goals and expectations. Remember to take the time to get clear and comprehensive answers to your questions before signing any type of contract.
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