A “Good Franchise” Test
While searching the web I met a lot of advices how to choose the best franchise. So, I decided to create a test that can be helpful during the franchise choosing process. I ask you to be charitable… and your comments are highly appreciated.
The rules of the test:
-try to be as honest as possible;
-you have to answer all the questions;
-each answer ranges from 1 to 10 points;
-for every question I provide an explanation of the lowest and the highest variants but you can choose any in between.
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QUESTIONS:
A. Does the Franchise meet your own personal and financial objectives?
1 point for – absolutely no;
10 points for – perfectly.
B. Does the Franchise represent the industry or business sphere that you like?
1 point for – you were never interested in that sphere;
10 points for – this was your lifelong ambition.
C. What do you think about the franchisor’s company and/or people?
1 point for – you know little about the company and the people or you do not trust them;
10 points for – you trust the company and the people and you believe they have enough knowledge, expertise, financial resources, and commitment to develop and improve a business.
D. What is your attitude to products and services offered by your possible franchise?
1 point for – you never tried the products yourself and you think it’s strange why people spend money for them;
10 points for – you like that products yourself and you are sure that they will be demanded by consumers during the life of the franchise.
E. Are you satisfied with what will you get for you franchise fee and royalty payments?
1 point for – you feel that franchise fee and royalty payments are too high and you are sure that you can spend that money much better yourself;
10 points for – you see that franchisor is ready to provide programs, guidance, and other forms of assistance which you are persuaded and all that programs are worth the money you pay to the franchisor.
F. Is franchisee protected from legal side?
1 point for – the agreement protects the franchisor’s rights but says nothing or very little about franchisee;
10 points for – your lawyer states that franchise agreement covers all the possible situations in your future business.
G. Have franchisor provided you a disclosure?
1 point for – not at all or it contains the information that you can’t believe;
10 points for – you are completely satisfied with the disclosure.
EXPLANATION
0-30 – this Franchise is not right for you;
31-50 – you may continue thinking about this business but I suggest you to ask for advice and to study it better;
51-70 – you can do the next step toward buying this Franchise.
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I ask everybody to evaluate my ‘Franchise test’ and send me comments. Thank you in advance!