Questions to Ask During the Validation Process
Brigitte Betser
Business Ownership Guide| Franchise Expert | Franchise Recruiter | Speaker | SCORE Mentor | #Franchise #SmallBusiness #Entrepreneur
I've talked with you a lot about validation in the past, because validation is the best way to learn about the franchise system you're exploring. Now, don't get me wrong, talking with the franchise development director is going to give you some great insight into the day-to-day operations of that particular business. But talking to folks who are in it every day is going to give you even greater insight.?
Asking the Right Questions
As you're talking with franchise owners, what questions should you be asking them? There are a couple of things you want to note. When it comes to the financial side of the business, the franchisor really cannot share much more than what's in that Franchise Disclosure Document.?
So as you build your cash flow analysis, you'll want to validate that cash flow analysis with the franchisees in the system. Ask them about the progression of the business. Ask them if you've missed any expenses.? Ask them if you're charging enough per service or product in your cash flow analysis. Anything financially related should be talked about through validation.?
领英推荐
The Role of the Owner
You will also want to talk with the franchise owners in the system about the role of the owner. What are they doing every day, and does that correlate with what you've learned from the franchise development director? Is it something that you're going to enjoy? Will it get you out of bed every day? Did you think that there was cold calling involved in this franchise opportunity? but in all reality, the franchisees are telling you it's not? Those are the types of things you want to learn.?
Two of the topics you will want to dig into with franchise owners around the country as you validate the franchise you are exploring include the financials and the role of the owner.? Other topics are important to explore as well, such as the training, support, and culture of the franchisor.
If you’d like help developing a list of questions to help you through the validation process, please reach out to me.? I’d love to help!