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I. Assessing yourself.
II. Assessing your franchisors.
III. Assessing franchise business.
If you are looking a new business in franchise or taking
a dealership, distributorship or C & f agency, here is a checklist
to assess yourself, your franchisor and franchise business. These
questions may be helpful to assess your success :-
I) Assessing yourself: - before investing any money, you
should ask the following questions and answer them honestly :-
a) Does this business allow you to utilise your
skills, knowledge and experience?
b) Are you ready for hard work at all times?
c) Do you have sufficient funds to invest into
it?
d) Are you ready for risk taking? If unfortunately
occur.
e) Can you handle your staff?
f) Do you think that you can achieve what
you are expecting from it?
g) Have you understood the franchise package and
operating manual?
h) Are you ready to work as per guidelines or
directions or your franchise?
II) Assessing your franchisor: - You must know about your
franchisor. You should collect following information about your
franchisor. You can also prepare your set of questions to assess
your franchisor :-
a) Is the franchisor had sufficient funds to operate,
advertise and working capital?
b) Is the franchisor has any audit rating, appreciation
from an independent agency?
c) How long has the franchisor been in this business?
d) What business experience and qualifications
do the franchisors, directors, manager etc have?
e) Do the franchisor have a good and proven track
record?
f) Whether the franchisor operates a pilot
franchise?
g) Whether franchisor is ready to provide on going
support of advertisement, development and training?
h) Whether the franchisor has been involved in
any litigation?
i) How many franchisees are in this business?
III) Assessing franchise business: - You must know the
answer of the following questions about the business you are going
to start: -
a) What is the total cost of this franchise business?
b) How much working capital is required?
c) What equipment/machinery are required and their
cost?
e) Is there any on going franchise fee? if yes,
then how much?
f) What is your commission or profit?
g) Is there any margin, security and deposit?
If yes, is it refundable in case of franchise business does not
go ahead?
h) Is the location of the premises suitable to
the business?
i) Is the area of business premises is sufficient
to operate?
j) Is the territory of your business is
explained to you?
k) How the records and accounts to be kept?
l) What advertising and promotional support
material will the franchiser provide?
m) To operate the business, do you have operating manual?
n) Who is the head of the franchisor? Is it possible
to meet him?
o) What is the communication system to meet other
franchisees and the franchisor?
p) What is the duration of agreement?
Now if you are satisfied with all the above answers, than go for
it. All the best from the entire team of Franchisee Wanted.Com.
For any other help just contact us.
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