he international Franchise Asscciation
has put together a list of questions
you should consider asking your potential
franchisor. (Learn more at tranchise:org))
ABOUT THE FRANCHISOR:
JWiere wil they be located?
What isthe sucess rate?
How do you protect franchisees from
ootly performing franchises?
Is there a franchise owners group?
Js thore a franchise advisory council?
‘Who owns the trademarks, service
marks, ote. Are thay feceraity registered?
‘Aré there any disputes pending oF
threatened against the trademark?
Has the tranchssor complied with the
FTGand state disclosure laws?
‘Are any senior management or key
personnel leaving the system?
Does this company compete with the
franchisees in the marketplace?
Will the franchisor offer financing?
Is the franchisor miling to negotiate
the terms of the franchise?
‘What is the total investment required
to own a franchise?
‘franchise too
‘furniture, fixtures, andi equipment
‘leasehold improvements
‘lease deposts
‘other deposits
‘franchise training
‘travel expense
= supplies
advertising and brochures
*gtand-opening advertising
‘inventory
+ pre opening staif costs
‘working capital until breakeven
What aro the continued financial costs,
the basis used for calculation, method of
payment and frequency of payment?
Must the franchisee purchase prod-
ucts oF services from the frenchigor?
Haw much dees the franchisor earn?
How are the products distributed?