While purchasing and owning a restaurant franchise comes with a lot of unique benefits, the strength of your investment will hinge upon which franchisor you choose to work with. It’s crucial to make an informed decision when selecting a franchisor as not every brand will be a perfect fit.
The interview process is a vital step in assessing whether a franchisor not only aligns with your goals and values but will also provide the critical support that makes the franchise model great in the first place.
As experts in all things restaurant real estate, we’ve got tips to help you master the process of interviewing a franchisor.
New to the world of franchises? We recently assembled an Ultimate Guide to Buying a Franchise Restaurant. Click here to download it.
Explore Multiple Options
As an entrepreneur, finding the right franchisor starts with research. Perform a web search for franchise opportunities in your area, or explore active franchise listings.
Even if you have a specific brand or franchisor in mind, it’s important to be open to other options as well. In some cases, your first-choice franchisor may not actually be a great fit for you. However, there could be another unconsidered option that is better aligned.
Before You Reach Out
Before scheduling an interview with a potential franchisor, explore their website and look for online reviews or testimonials. Understanding their business model, history, and reputation will help you formulate insightful questions during the interview.
Searching for other franchise-related resources? We’ve got lots! Explore these other posts from our site.
- Buying a Restaurant Franchise? Here’s What You Should Know
- 5 More Things You Should Know About Opening a Franchise
- Tips For Signing a Franchise Agreement
Ask About Brand Values
Beyond the financial success of the brand as a whole, it’s important to evaluate whether the franchisor’s culture and values fit with your own. Being well-aligned on key values can lead to a more satisfying and successful partnership. The franchisor-franchisee relationship should be built on trust and shared goals. Discuss the company’s mission, values, and stance on any particular areas that are important to you.
Don’t forget to talk long-term. Ask about the franchisor’s large and small scale ambitions for the future. How do they plan on expanding their brand? How will their support for franchisees change or evolve as the brand grows?
What Kind of Support Do They Offer?
One of the distinct benefits of buying a franchise is the built-in support from the franchisor. A great franchisor will offer a wide range of resources, guidance, and other tools to help your business be successful.
Ask about the training and support provided by the franchisor. Understand the initial training process, ongoing support, and any resources available to franchisees. A strong support system is essential for your success as a franchisee.
Fee Structure
Franchises do come with upfront and recurring costs. While there are some general industry averages for royalties costs will vary by franchisor. As an entrepreneur, you’ll want to have a clear understanding of these costs before you sign on the dotted line.
During your interview, discuss the initial franchise fee, ongoing royalty fees, and any other costs associated with buying, owning, and operating the franchise. Inquire about potential hidden fees or unexpected expenses.
If buying an existing franchise location, you’ll also want to be clear about which assets or furnishings are included in the sale.
Need more industry-insider tips about opening a franchise in Canada? Check out these blog posts.
- How to Sort Through Restaurant Listings
- Jump Start Your Canadian Entrepreneurial Career By Buying a Franchise
- Should You Buy a Franchise in Ontario?
Chat With Current & Past Franchisees
After your interview with the franchisor, connect with current franchisees in the Canadian network to gather firsthand insights. Ask about their experiences, challenges, and successes. Find out if they feel well-supported by the franchisor and whether the business meets their financial expectations.
Speaking to existing franchisees can provide invaluable information and help you gauge the franchise’s values, overall suitability, potential in your market, and whether they really walk the walk when it comes to their main selling points.
In addition to franchisees who are currently part of the franchisor’s network, speaking with entrepreneurs who have sold their franchise and are no longer affiliated with the brand can also offer unique and transparent insights into working with a franchisor.
Thinking of buying a franchise? As seasoned experts in Canadian restaurant real estate, we’re here to help you exceed your entrepreneurial goals. Send us an email or give us a ring at 416-618-0054 to get started.
