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There are several things you need to do to get the best information on the franchises you’re looking into buying.
One of the most important things? Talking to as many franchisees of that company as possible. But there’s something else, particularly if the franchise is one with a customer-facing component: You need to visit franchisees in-person. At their places of business.
Why is it crucial for you to spend time with franchisees, face-to-face? What you can expect to gain by doing so? Keep reading.
Why Visit Franchisees?
For one, there’s nothing like seeing a real-life example of the business you’re thinking of owning in action.
That’s because up until that point, you will have been painting a picture of the business in your head. What it looks like. Imagining what it’s like to work day-to-day. Etc.
The key word there is imagining. Until you spend a day in the actual business, you won’t actually know how the franchise works and what your role as a franchisee will be.
And while it’s acceptable to ask a franchisee questions on the phone. It’s quite another do so face-to-face. It’s better.
A Common Mistake
However, don’t make the mistake of visiting franchisees too early in the process.
Why? In most cases, you won’t have enough knowledge of the brand, how things operate, if there’s availability in your area, and more.
In addition, the questions you’ll be asking will give you away. More specifically, you’ll end up asking questions that most normal customers would never ask. If that happens, the franchisee may start feeling uncomfortable, and start getting fearful about someone else moving into their territory.
Note: In most cases, the franchisee will have a protected territory, so they likely have nothing to fear. But still, they may feel it anyway.
Finally, if you do end becoming a franchisee, you’ll want to have good relationships with other franchisees in your geographical area. You may end up doing marketing and promotions together. Plus, you may need to ask them for help with something in the future.
When To Visit Franchisees
You should only pay in-person visits to franchisees when you have a good understanding of the franchise business and are deep into the process of becoming a franchisee.
Additionally, I don’t suggest visiting franchise owners until you’ve had a lot of phone calls with lot of franchisees. That way, you’ll have a better idea of what to look for and what to ask in-person.
Tip: Try to visit at least two franchise businesses, as not every location feels exactly the same. Management styles do vary from store to store.
What to Do During Your Visits
You need to ask questions and observe the operation.
The good news is that the franchisees you visit fully expect you to ask lots of questions. So, fire away. Plus, they’ll come natural at this point, because you’ve already gathered a lot of information from the calls you made to franchisees before your visits. And you’ll know what to hone in on.
For example, once you’re at their location, it’s a great time to find out how the franchisee found her location. Did the franchise company help? How much help was provided? Can they offer specific suggestions as to how you can find a good location?
Other questions you need to ask:
- How is your employee situation? Is there a lot of turnover?
- How do you recruit your employees?
- Is your store the right size for you?
- How much time are you spending here?
- How are your sales? Are they about what you expected them to be? Are your profit margins good?
- Is there something you wish you would have known before you opened your franchise business?
Also, you need to observe what’s going on in the business.
Does it seem organized and professional?
Does this feel like something you’d want to do?
Do you think you can be successful as an owner?
Finally, if it’s okay with the franchisee, take some pictures of the interior and exterior of the business if it has a store front. Seeing those images will help you remember some the things you felt and saw during your visits.
To summarize, when the time is right, you need to visit a couple of franchise locations. And when you’re visiting, ask lots of questions. Observe the franchise business in action. That way you can decide if the franchise concept you’re interested in is the right one for you. One you can own.
The Franchise King®, Joel Libava, is a top franchise expert. He’s written over 2,000 different articles on franchise ownership and personally consults with people who are looking to buy a profitable franchise. Go here to find out how The Franchise King® can help you become your own boss.