6 Questions to Ask Before Buying a Franchise
It’s important to look before you leap into franchising, which is why asking the right questions should be a top priority. Knowing all the facts will help you choose a franchise opportunity that meets your financial and lifestyle goals with confidence. Read below to learn what questions to ask before buying a franchise.
The franchise business model fosters entrepreneurship by arming a new business owner with a proven brand, established operational guidelines, and training. A network of franchise owners and a robust franchise support team provide guidance on your entrepreneurial journey. Even during a tight economy, the number of franchises in the U.S. was forecast to grow nearly 2% in 2024 to 821,000 locations, according to the International Franchise Association.
A Franchise Checklist
Two Maids, a leading residential cleaning provider, started franchising in 2013. We’ve honed our franchise process and know the important questions to ask before buying a franchise.
Here’s a list of franchise questions to help you get started:
1. What is the Market Potential?
Launching a business in a high-demand industry is vital. It increases the potential for a consistent flow of customers, reducing uncertainty and helping your business maintain steady revenue. Choosing a high-demand industry offers strong growth potential and increases the chance your business will be successful.
2. What are the Initial and Ongoing Costs?
It’s crucial to understand your full financial commitment upfront. Be sure to obtain a breakdown of your initial investment. Startup costs can include the franchise fee, equipment, training costs, technology, and more. Depending on the type of franchise you decide to open, you may need a storefront. Many home services franchises are mobile and operate from a home office. Others only require a small footprint to store supplies. The initial investment for a Two Maids location starts close to $61,000* when you take advantage of our in-house financing.
It’s also important to take the pulse of existing franchisees to get a full picture of your investment. They can help you gain an understanding of your potential break-even point, as well as any unexpected costs they have encountered along the way.
3. What Support Does the Franchise Provide?
Having a built-in support system is what makes franchising a promising path to business ownership, but not all franchises offer the same level of support. Get a clear picture of the training and support offered by the franchise you’re considering. They should offer a mix of virtual, classroom, and on-the-job training as you get started.
And support shouldn’t stop after your grand opening. You should receive continual marketing guidance and ongoing operational support. After initial training, Two Maids assigns each franchisee a field representative to provide personalized support. We also host conference calls, regional meetings, and an annual conference to provide year-round training opportunities.
Some great questions to ask about support when you talk to an existing franchisee are:
- How does the franchisor respond to challenges?
- Are they nimble and supportive when confronted with market challenges?
- Do franchisees feel like they must navigate uncharted waters on their own?
4. What is the Franchisor’s Track Record?
Listen carefully to gauge the stability and market performance of the brand. Ask about the franchise failure rates and the reasons behind the closures. Verify the franchisor’s claims by looking at online customer reviews and third-party rankings.
5. What is the Territory Policy?
Most franchisors grant a local owner a defined territory to prevent competition from other franchisees. Understanding the territory will help you plan a growth strategy as you add new customers. Each Two Maids protected territory has a minimum of 50,000 households.
6. What are the Terms for Exiting the Franchise?
Whether you plan to pass your business down to the next generation or sell it when you retire, it’s important to have a plan. A fair and transparent exit strategy provides peace of mind, and is a sign of a franchisor you can trust.
Invest in a Two Maids Franchise
Busy lifestyles and high disposable income are fueling a steady demand for residential cleaning services, particularly in North America, Fortune Business Insights reports. Two Maids’ focus on residential cleaning and its pay-for-performance service model makes it an ideal franchise choice.
Request information to learn more about how you can build a cleaning business with strong employee satisfaction in your area.
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