Though a franchise is regarded as one of the safer business investments, people can still get into trouble by buying a franchise blindly—that is, without asking the right questions. While a red-hot franchise often seems like a surefire way to success, there may be some not-so-obvious warning signs indicating that you should stay away at all costs. GbBIS, the leading provider of mapping services and data for franchises, gives you the right questions to ask before acquiring the franchise of your dreams. (source article http://www.cnbc.com/id/48247766)
1. How Careful is the Franchisor in Choosing its Franchisees?
A franchisor should be interviewing you as much as you are interviewing them. They should be concerned about how you will fit into their franchise system. A franchisor that is willing to give a franchise to anyone who will write them a check could be a big warning sign.
2. How Experienced is the Management Team?
When looking at a franchise, find out if the management team has any previous experience in franchising — and if so, with what companies. Don’t be afraid to dig into their backgrounds and ask how they’ve handled rapid growth in the past.
3. Does the Franchisor Offer Exclusive Territories?
An important question to ask your franchisor is do they offer exclusive territories? And if so, how big are they? If they don’t offer exclusive territories or if the territories are relatively small, consider whether the type of business they’re selling would benefit or be harmed by having many locations in the same area. Can you work together with other franchisees or company-owned locations, or will you only be in competition?
These questions can help you decide if the franchise you’re looking at is the right franchise for you. But, there are still more important questions to ask.
How many competitor locations are in your franchise area?
What is the traffic like around your store?
How accessible is your store to cars, pedestrians, etc.?
How far is your location from your customer base?
GbBIS can help you answer these questions. With over 25 years of experience providing geography-based solutions to franchises, GbBIS produces maps, reports, web applications, and databases to help franchises manage their territories and assess their markets. We can help you answer any questions you have about demographics, locations, traffic, transportation, and more.
Contact GbBIS today and discover how we can help you find the answers to your franchise questions.
Visit Us on the Web at gbbis.com
Call Us at 1-877-447-6277
Image 1,5 via gbbis, Image 2 via blog.lavablast.com, Image 3 via tetrad.com, Image 4 via greatoutdoorsmagazine.info