Meeting face-to-face with a prospective franchisor is an important step in the franchise investigation process. Here are five questions you should ask when you meet the franchisor, and why they’re important:
1. How much is the initial investment and what does it include?
Though this number may be given to you as a range, as there can be variables, it is important to get a picture of the financial commitment involved.
2. How does the franchisor award locations?
A good franchisor will have an established process that prospective franchisees are guided through, one that allows sufficient time for both sides to gather information and evaluate the opportunity.
3. What kind of initial and ongoing training/support does the franchisor provide to franchisees?
Since consistency is king in a franchise system, you want to see that the franchise offer some level of training and support in order to ensure that all new franchisees are able to exactly replicate the business concept at their location.
4. Is the franchise system a member of the Canadian Franchise Association (CFA)?
All CFA members voluntarily agree to abide by the CFA Code of Ethics, as well as to provide disclosure documentation in all Canadian provinces and territories.
5. Will I be provided with a disclosure document?
Existing franchise legislation in five provinces (Alberta, Manitoba, Ontario, New Brunswick, and PEI) and coming into effect in British Columbia mandates that prospective franchisees be provided with a disclosure document before signing on. As mentioned above, CFA members voluntarily agree to provide disclosure documentation across Canada. A disclosure document is a compendium of information about the franchise system and its officers.
Meet Franchisors at The Franchise Show!
One of the best places to meet in-person with franchisors is at The Franchise Show, the Official Show of the Canadian Franchise Association. Upcoming show dates include Toronto (October 22 & 23 at Toronto Congress Centre) and Vancouver (November 5 & 6 at the Vancouver Convention Centre). For more information about the show, and to receive $5 off admission, click here.