The Franchising Business – Some Expert Tips and Advices

Updated: Mar 9, 2021


Starting a franchising business involves a number of steps including creating a franchise

development plan, documentation of operational procedures, making arrangements for

training and assistance, preparing a franchise contract, attracting franchisees, establishing new franchisees, and organizing your business setup. Similar to any other business, there are certain pros and cons involved in becoming a franchisee. Given below are some expert tips and advices that have been categorized into do’s and don’ts. You can always follow these advices to make a well-informed decision.

Do’s


1) Always provide a precise estimate about your financial state to the franchisor so that he can

evaluate whether this investment is sensible for you.

2) When you are being asked questions, you should give straight, candid and truthful replies.

Whenever you have any doubt, try to make it clear. This will earn you regard from your

franchisor.

3) Always fill out the application forms meticulously. In the beginning, the franchisor will

evaluate how comprehensively you answer. This form will be kept by the franchisor in his

records if he goes ahead with you.

4) Always ask questions regarding how interviews or conferences will be conducted. Always

stay ready. Read the fine print carefully all the time. Ask for the Uniform Franchise Offering

Circular (UFOC).

5) You should always ensure that you are well dressed whenever you come to the meeting. This

will create a positive impression in the franchisor’s mind that you are sincere about the deal.

6) You should always be co-operative regarding any evaluation methods since this will help the

franchisor ascertain your pluses and minuses.

7) Always try to keep a professional relationship with the franchisor. Take sufficient time for

exploring the franchisor and its present franchisees.


Don’ts


1) You should not be ambiguous or avoid any matters. Always try to provide particular answers

to the questions you face from the franchisor.

2) You should not overstate your financial condition. If you lack adequate finance, you might

face insolvency in the very beginning of your commercial venture.


3) You should not misrepresent or leave blank areas in the application form. Any kind of

misrepresentation may backfire on you.

4) You should not carry any assumption that you are aware of everything that is going to be

discussed in the meeting. If you are taken by surprise, then the franchisor may think you are

incapable.

5) You should not pretend to be someone which you are not. You might be considered as

unreliable by the franchisor.

6) You should not make decisions by feeling obliged, afraid, or emotional. Always keep in mind that you are entering a long-standing association and the individual from whom you are buying the franchise might not be there at some point.


No matter what the scale of operation of the franchisor is, they will always search for

franchisees who can provide high quality services and help their business grow by customer

satisfaction.