How can you evaluate a franchisor's support system?

1 Review the FDD

Reviewing the franchise disclosure document (FDD) is the first step in understanding the franchisor, the franchise system, and the obligations of both parties. This legal document contains 23 items that cover various aspects of the franchise, such as fees, training, marketing, operations, and financial performance. It's important to pay special attention to items 11 and 12, which describe the franchisor's support and assistance to franchisees. These include initial and ongoing training programs, pre-opening and post-opening services, ongoing support and communication channels, and advertising and marketing programs. The FDD should give you an idea of what kind of support you can expect from the franchisor and your responsibilities as a franchisee. It's recommended to compare the FDDs of different franchisors to see how they differ in terms of the support they offer.

2 Talk to current and former franchisees

The second step is to talk to current and former franchisees of the franchise system you are interested in. This will provide you with firsthand insights into the franchisor's support system, as well as their satisfaction and challenges with the franchise. You can either find their contact information in the FDD, or visit their locations and ask them directly. Some of the questions you can ask them include inquiring about the initial training and support from the franchisor, ongoing support and communication, advertising and marketing support, the relationship between the franchisor and franchisees, profitability and success of their franchise, and whether they would recommend it to others. By speaking with multiple franchisees, you can verify the information in the FDD, as well as get a realistic and honest perspective on the franchisor's support system.

3 Evaluate your own needs and preferences

The third step is to evaluate your own needs and preferences as a potential franchisee. Depending on your background, experience, skills, and goals, you may have different expectations and requirements for the franchisor's support system. For example, you may prefer a franchisor that provides more guidance and supervision, or one that gives you more autonomy and flexibility. You may also have specific questions or concerns about certain aspects of the franchise, such as the technology, the operations, or the competition. You should assess your own strengths and weaknesses, and identify the areas where you need more or less support from the franchisor.

Evaluating your own needs and preferences can help you determine if the franchisor's support system matches your style and personality, as well as your business objectives. You should also communicate your needs and preferences to the franchisor, and see how they respond and accommodate them.

Evaluating a franchisor's support system is a crucial step in choosing a franchise that suits you. By reviewing the FDD, talking to current and former franchisees, and evaluating your own needs and preferences, you can make an informed and confident decision about your franchise investment.

4 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?