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In relation to the franchise Best Option Restoration answer the following questions: - How financially strong is the franchise company? A franchisor s most recent
In relation to the franchise Best Option Restoration answer the following questions:
How financially strong is the franchise company?
A franchisors most recent financial statements can be found in item of the FDD and can give you an indication of the franchise systems financial picture. Ask the franchisor to explain how they have shown steady growth and about their future plans for growth. Youll also want to explore whether the bulk of their income comes from royalties or the sales of franchises, and whether the franchisor designates an adequate amount of funds to the system
Look at history
Has a franchisee sold to another franchisee?
How many other locations are there and what is your success rate?
The number of units a franchisor has determined their size but not necessarily their success. Are the franchisees receiving ample support? A large franchisor may be spread too thin while an up and coming franchisor may not have enough resources. Ask what the success rate is among their franchisees and what the reasons are for failed units.
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