Senior Care Franchises: 8 Questions to Ask a Franchisor During Your Research
Knowing the right questions to ask a franchisor can get you some insightful answers. Discover the top eight questions to ask, plus what to listen for in their responses.
Questions To Ask in a Franchise Interview
Researching potential franchises is a critical step to ensure you make the best investment decision. Asking the right questions can help you gain a deeper understanding of the franchisor and the opportunity. See what we think are the topmost important questions to ask below.
- What is the company’s story? Get a general understanding of the franchise brand. Ask when the brand was founded, when they started franchising, and how many units they currently have.
- What are the brand’s plans for the future? Don’t be shy — ask about the company’s future goals. Many franchises have a set number of locations they want to reach within a certain timeline. There may also be markets the brand is interested in but hasn’t expanded to yet.
- What is the initial franchise fee, and what does it cover? The initial franchise fee is a nonrefundable payment to the franchisor to help cover the costs of starting your location. Opening a new franchise takes a lot of time and manpower; make sure to understand how much the initial fee covers and how much support you can expect during the opening process.
- Are there any ongoing royalties or advertising fees? If so, how much? All franchises require regular payment of royalties and advertising fees. Typically, these are calculated as a percentage of gross sales. These will impact your ongoing costs once your location is operating, so it’s good to know upfront what is expected of you.
- What is the total estimated initial investment? The initial investment is typically listed in a range. Different variables, such as the location and size of your storefront, will dictate your startup costs.
- Will I have an exclusive territory? An exclusive territory means you have a market or area all to yourself and won’t have to worry about competing with other franchisees within your system. You’ll want to confirm with the brand how they determine territories. Your area should consist of enough customers for your business.
- Can I see the Franchise Disclosure Document (FDD)? Every franchise brand has an FDD. This document contains pertinent information about the brand, including any affiliate companies, litigation history, and financial representations. You should receive a copy of the FDD early on in the discovery process, so you have ample time for review.
- Can I speak to existing franchisees about their experience? This is a must. In the FDD, there is usually a section that lists the names of franchisees and their contact info. Speaking with franchisees who lived and worked the business every day will be important in determining which opportunity is best for you.
Questions to Ask a Franchise Owner
While it’s important to know what questions to ask a franchisor, it’s also vital to know what questions to ask franchisees. During what’s known as the validation step of the franchise discovery process, you’ll have the opportunity to connect with past or current franchisees to gain a better understanding of the franchise business. It’s wise to have a list of questions prepared to discuss. Be sure to ask the same questions to each franchisee you speak with — this will make comparing answers that much easier. Here are some recommendations to get you started:
- How smooth was the startup process for you?
- Was the training provided by the franchisor sufficient and effective?
- Are you satisfied with the support you receive from the franchisor?
- How long did it take you to break even?
- Can you describe a typical day as a franchise owner?
- How is the competition in your territory?
- Is there anything you wish you had known before purchasing the franchise?
- What advice would you give to someone considering this franchise opportunity?
- Are you satisfied with the marketing and advertising support provided by the franchisor?
- How connected do you feel to other franchisees within the network?
Listening to the franchisee’s responses can give you insights into the real-world challenges and advantages of the franchise opportunity. Notice not only the content of their answers but also their overall sentiment and satisfaction.
Franchise with HomeCare Advocacy Network
HomeCare Advocacy Network (HCAN) is a leading senior care franchise founded in Omaha, Nebraska. Our brand offers world-class, caregiver-centric franchise training to ensure the best care for all of our clients. We offer an affordable franchise opportunity with startup costs ranging between $116,650 and $161,000.
We allow our franchisees to own multiple exclusive territories and have plenty of room for continued growth. To learn more about our senior care franchise, contact us today.