Top Questions to Ask Your Potential Franchisor

Becoming a franchise owner in the home care industry can offer many benefits to individuals looking to achieve financial independence and a better work-life balance. However, such an investment requires thorough planning and research. When embarking on any new business venture, it’s essential to perform an in-depth evaluation of your potential franchisors to determine if you’ve found the right match. 

One advantage of owning a franchise over starting a business is that franchisors must disclose the exact costs and other information about the offering. If you’re new to franchising or unsure which questions to ask when speaking with a franchisor, we’ve created a list to help you identify red flags or promising opportunities.

Questions to Ask a Franchisor Before Buying

Investing in a franchise can be an exciting step toward accomplishing your goals. Before completing your purchase, you’ll receive a franchise disclosure document (FDD) that discloses all relevant information about the franchisor to help you make an informed decision. 

The FDD will guide you before you launch your business and contains details about legal obligations, startup expenses and performance data. However, it’s still necessary to ensure due diligence before signing a franchise agreement by creating a list of open-ended questions. Here are the top franchise questions to ask franchisors to determine if a business is right for you. 

1. Who Is Your Ideal Candidate?

While you’re deciding whether a franchise fits your business goals, the franchisor looks for an ideal franchisee. This is a great first question because it allows both parties to understand one another’s expectations. Most franchisors tend to have a list of qualifications, skills or personality traits that they believe align with their brand. It’s important to determine if you meet their criteria before signing the franchise agreement.

2. What Does It Take to Be a Successful Franchise Owner?

Though you’ve likely put a lot of thought and consideration into your decision to pursue franchise ownership, you’ll want to hear what your potential franchisor believes will make you successful in the industry. For example, owning a home care agency may require a genuine passion for providing care services and impacting your community. It may also require team-building, marketing or delegation skills.

3. What Sets You Apart From Competitors? 

Ask your franchisor to describe unique aspects of their business model or what innovations they’re proud of. What unique selling points do they offer? What concepts help them stay competitive in the industry? By the end of your discussion, you should thoroughly understand the franchisor’s business model and value proposition. 

4. What Is the Financial Status of Your Franchise?

When you receive your FDD, you’ll have access to certain financial statements to help you understand whether the system gets adequate funds and the business’s growth over time. Some follow-up questions might include:

• What is the biggest risk to your financial health?
• How will you support franchisees and staff on payroll during an economic downturn?

5. What Ongoing Support Do You Offer?

This is one of the most important questions to ask your franchisor, as it will give you an idea of the type of training and assistance you’ll receive during your ownership journey. Most franchisors provide initial training when you launch your business, but you’ll want to inquire about the level of support available to you after your business opens. 

Some follow-up questions might include:

• Will I be mentored by existing franchisees? For how long?
• What kind of training do you provide? Who conducts it?
• Who must attend the training?
• Will you provide training materials for new staff?
• Will I receive support in person, over the phone or through email?
• Are there fees associated with access to ongoing support and resources? If so, what do they cover?

6. What Are Your Expectations for Franchise Owners?

Apart from your experience, qualifications and unique characteristics, you’ll want to ask your potential franchisor what they expect from you in terms of operation and obligations. These elements will be outlined in the franchise agreement, but it’s important to have a clear understanding of your requirements to maintain consistent quality and customer service standards. 

Additionally, you might ask how the franchisor ensures consistency and reputation across all locations. How do they ensure brand standards are met? 

7. What Is Your Strategy for Developing the Franchise Network?

Asking about the company’s future goals can give you a good idea of what they have planned. For instance, some franchises may set a goal to expand to a specific number of locations within the next few years. Others may consider adding or removing certain services. Inquire about their long-term strategy for building brand recognition, particularly in your state or market area. You can also inquire how they’ll help you scale your own business. 

8. What Are the Day-to-Day Responsibilities of a Franchisee?

Make sure your franchisor accurately describes your daily responsibilities. For example, will you be expected to participate directly full-time, or does your position require more delegation?

9. What Are Some Common Challenges Your Franchisees Face?

Outside of the information you learn in your FDD, you may also want to ask your franchisor about the potential challenges you may face when starting your franchisee journey. Perhaps they can tell you the most common challenges other franchisees have faced and how they supported them in overcoming these obstacles.

10. How Do You Resolve Disagreements or Disputes?

Because you will have a franchise agreement between yourself and the franchisor, you’ll want to understand how they handle disputes with franchisees. Your FDD will provide details on the franchisor’s litigation history, which can indicate whether they adhere to the franchise agreement in certain cases. Be sure to ask if you’re unsure about what actions could result in termination of the agreement. 

Contact HomeWell to See if Franchising Is Right for You!

Investing in a home care franchise is a significant business decision, so you need your questions answered honestly. At HomeWell Care Services, we provide dedicated franchise coaches to help you address the challenges of business ownership. From ongoing support and marketing materials to industry insights, we’ll equip you with the resources to give you peace of mind. Contact us today to learn more about becoming a franchisee with us, or download your free franchise kit!