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Last updated on 2024年6月20日

How can you effectively gather information during franchise negotiations?

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Franchising is a popular way to start or grow a business, but it also involves complex and often lengthy negotiations with the franchisor. Before you sign any agreement, you need to gather as much information as possible about the franchise opportunity, the franchisor, and the market conditions. Here are some tips on how to effectively research and communicate during franchise negotiations.

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Juarez Le?o

Presidente do Conselho de Administra??o, Board Member, Consultor em Varejo, Franchising, Estratégia e Governan?a. CEO…
Claudemir Martins Xavier dos Santos

Especialista em Franquias e Varejo | Co-fundador na MXS Solu??es Corporativas | Expert em Opera??es de Franquias…
Leandro Rampazzo

Founder e CEO na Godiva Propaganda | Ajudando grandes empresas e redes de franquias a crescerem!

1 Know your goals

Before you enter any negotiation, you need to have a clear idea of what you want to achieve and what you are willing to compromise on. Think about your financial, operational, and personal goals, and how they align with the franchise model. For example, how much are you willing to invest, how much control do you want over your business, and how much support do you expect from the franchisor? Having a realistic and well-defined set of goals will help you evaluate the franchise offer and negotiate the best terms for you.

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Juarez Le?o

Presidente do Conselho de Administra??o, Board Member, Consultor em Varejo, Franchising, Estratégia e Governan?a. CEO Le?o Group
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Durante as negocia??es de franquia, é vital estar bem preparado com quest?es abrangentes que cubram todas as facetas do negócio. Enfatize a importancia da transparência, requisitando informa??es detalhadas sobre as finan?as, histórico de desempenho e taxas de sucesso de outras unidades franqueadas. Mantenha um diálogo franco com o franqueador e com franqueados estabelecidos para ganhar perspectivas reais. Aproveite cada encontro e apresenta??o para tirar dúvidas e entender as expectativas. Registre meticulosamente todas as conversas e dados coletados para revis?es futuras. Essa abordagem cuidadosa auxilia na tomada de uma decis?o bem informada, reduzindo riscos e estabelecendo as bases para um relacionamento de franquia bem-sucedido.

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Xiomara Overman- Firma, ISO CMC Certified

Franchise Strategist | Franchise Consultant | Export Strategist | SUM| Parque Tec Partner | Investment Advisor | Business Advisor | Agile HRM
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Una negociación es el medio más importante en cualquier decisión de negocios Al entrar en la negociación tiene que tener claro cuales son los importantes objetivos cuales van a ser indespensables para lograr que tenga éxito la Franquicia. Los terminos a negociar van a ser decididos para el éxito para ambos partidos en la negociación. La meta comun tiene que ser la garantía del crecimiento y éxito a largo plazo para ambos partidos.

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2 Do your homework

One of the most important steps in franchise negotiations is to do your due diligence on the franchise opportunity and the franchisor. You should review the franchise disclosure document (FDD), which contains detailed information about the franchisor's history, financial performance, legal issues, fees, obligations, and other aspects of the franchise system. You should also research the industry trends, market demand, competition, and customer preferences in your target area. You can use various sources of information, such as industry reports, trade publications, online reviews, and feedback from existing or former franchisees.

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3 Ask questions

Another way to gather information during franchise negotiations is to ask questions. You should not hesitate to ask the franchisor or the franchise broker any questions that you have about the franchise opportunity, the agreement, or the expectations. You should also seek clarification on any terms or conditions that are unclear, ambiguous, or unfavorable to you. Asking questions will help you understand the franchise offer better, identify any potential issues or risks, and show your interest and professionalism.

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Paul Ehlinger

Helping multi-location brands manage social media with AI
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I would add that asking as many questions of peers within the franchise system is of vital importance. Find active franchisees (or even better, franchisees that are no longer with the brand) to hear their experiences.

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4 Listen actively

Listening is as important as asking questions in franchise negotiations. You need to listen actively to what the franchisor or the franchise broker is saying, and pay attention to their tone, body language, and reactions. Listening will help you learn more about their goals, motivations, and concerns, and how they perceive the value of the franchise opportunity. It will also help you build rapport, trust, and respect with them, which can facilitate a smoother and more positive negotiation process.

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5 Verify information

Finally, you need to verify the information that you receive during franchise negotiations. You should not rely solely on the franchisor's or the franchise broker's claims or promises, but seek independent and objective evidence to support them. You can verify information by checking references, contacting current or former franchisees, visiting existing locations, consulting with professionals, such as lawyers, accountants, or consultants, and comparing different franchise options. Verifying information will help you avoid any unpleasant surprises, disputes, or regrets later on.

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Emma Berry

? The Branding Lawyer ?? I help protect valuable brands and ideas ?? Registered trade marks attorney
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Franchisees in Australia should ensure they receive a disclosure document, key facts sheet and information statement when enquiring about a franchise opportunity. These disclosures give important information about the franchise, and prospective franchisees should make their own separate inquiries into that information. Franchisees should consider reaching out to current and past franchisees to understand the franchise business, the benefits and the drawbacks. They should also thoroughly investigate proposed locations for the business to maximise their chance of success.

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6 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?

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Claudemir Martins Xavier dos Santos

Especialista em Franquias e Varejo | Co-fundador na MXS Solu??es Corporativas | Expert em Opera??es de Franquias, Estratégia de Crescimento e Customer Success
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O sistema de franquias tem na sua essência a transparência para que o candidato possa, mesmo antes de assumir qualquer compromisso, ter acesso aos contatos de atuais e ex franqueados.

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Leandro Rampazzo

Founder e CEO na Godiva Propaganda | Ajudando grandes empresas e redes de franquias a crescerem!
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Durante todo processo de negocia??o o candidato a novo franqueado deve ter acesso as informa??es necessárias para avaliar o negócio de maneira profunda. Contato com outros franqueados, bate papo com ex-franqueados, ler cuidadosamente a COF…

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How can you effectively gather information during franchise negotiations?

1

2

3

4

5

6

1 Know your goals

2 Do your homework

3 Ask questions

4 Listen actively

5 Verify information

6 Here’s what else to consider

Franchising

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How can you effectively gather information during franchise negotiations?

1

2

3

4

5

6

1 Know your goals

2 Do your homework

3 Ask questions

4 Listen actively

5 Verify information

6 Here’s what else to consider

Franchising

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