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Franchise Pre-Assessment Eligibility Tool

Introduction

 

Franchising is the practice of starting up a business using another firm's successful business model, essentially gaining membership in that organization. No matter which type of franchise you’re interested in, the decision is both a significantly personal and financial one, and should not be entered into lightly.

Starting down the franchising road can be tricky because most people aren’t sure of where to start – so we’ve developed this tool to help make your decision a little easier. If you’re a prospective franchise buyer this tool will help you evaluate franchise systems, before any sizeable expenditures are made.

As you go through the questions, your answers will be recorded for evaluation purposes and a summary will be presented to you through your email within a day after finishing the whole test at the end. You’ll also be able to export and print out the evaluation, so that you can refer back to it at a later date.

Click on one of the links below to get started:

•              Know Thyself - approximate time to complete: 15 minutes

•              Evaluating the Franchisor - approximate time to complete: 10 minutes

•              Engaging Other Franchisees- approximate time to complete: 5 minutes

Know Thyself

 

Buying a franchise may be one of the most significant investments an individual may make. The questions below will help you understand if you're ready to make this commitment.

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Approximate time to complete: 15 minutes

* Required Information

Your Nature

* 1. Are you the type of individual who is willing to join someone else’s system, and therefore follow all the rules and procedures of that system?

* 2.“The franchisor-franchisee relationship is like a marriage in many Aspects: there is a courtship period, a ceremony, a honeymoon period, a comfortable period and possibly a divorce.” Do you agree with this statement?

* 3. Are you the type of individual who can put a significant portion of your net worth at risk and, if the going gets tough, continue to work hard at your business?

* 4. Are you prepared to work longer hours than if you were in an employment situation?

* 5. Do you consider yourself to be an organized individual?

* 6. Do you consider yourself to possess the discipline necessary to look after business paperwork and the many other aspects of running your own business?

* 7. Do you believe you’d be able to successfully manage relationships with other key stakeholders, such as franchise system personnel and your own employees and suppliers?

* 8. Would you say that it is important to you to be your own boss?

* 9. Do you believe a franchise owner’s efforts should be geared more towards the day-to-day hands on duties of running the business and serving customers, and less towards high-level overview management?

Your Goals

* 1. Do you want to spend the next several years owning your own business?

* 2. Are you seeking to buy a business with a proven concept?

* 3. Do you see yourself taking to people sharing your product info upselling and delivering products and/or services, when its needed regardless of whether or not you have employees?

* 4. Are you seeking to buy a franchise to build “net worth” (wealth)?

* 5. Are you prepared to be involved in the day-to-day operations of running the franchise?

* 6. By definition, an entrepreneurial person is a person who starts, organizes and manages a business, usually with considerable initiative and risk. Would you say that you are entrepreneurial, but still willing to follow an established process and accept guidance on business practices?

* 7. Would you like to own several franchised units, as opposed to just one franchised unit?

Your Investments

* 1. Have you made allowance for funds to operate the franchise (and funds to live on, if necessary) until the franchise turns profitable?

* 2. Do you have the ability to forego regular annual income from your franchise while the franchise is in its early stages?

* 3. Have you determined how much you are prepared to invest in a franchise?

* 4. Generally speaking, can you afford (and are you prepared) to lose a portion of the funds you will need to operate a franchise and just in case your effort was not enough and you couldn’t make it with your franchise, are you the type who loves to blame or point out other people for your own mistake?

* 5. Do you have enough funds to purchase a franchise business from your end? 

* 6. Or you need to seek financing to purchase and/or operate your franchise?

Evaluating the Franchisor

 

When you’re considering buying a franchise, it’s important to do your homework and learn everything you can about a franchisor and the way their franchise system operates.

If you’re looking at buying more than one franchise, you should strongly consider going through and completing this section separately, for EACH franchise you’re looking to buy.

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Approximate time to complete: 10 minutes

* Required Information

Investigation

* 1.Do you believe in a service-based business?

* 2. Do you believe that if you did not bring a client or your client did not go through it is not considered as a successful client and you will not get paid with your effort?

* 3. Will you be comfortable to get paid 6 weeks after student start date or might get into 8 weeks overall before receiving your payment due to sometimes un controlled situation occurs?

Franchisors, and Affiliates

* 1. Do you understand how the franchisor’s legal business entity or entities are structured?

* 2.Have all of your questions about buying the franchise been answered to your reasonable satisfaction?

* 3. Do you believe in a saying that you can never please everyone? In the event that you are facing some company bashers will you stand behind your company to protect it?

* 4. Are you a type of person who will quit when things do not go your way? Are you a person who loves to keep whining without making any company performance?

Business Background

* 1. Have you owned and operated your own business previously, whether alone or with others?

* 2. Do you know that you need to put some time and effort to run a successful business?

* 3. Do you know that there are other expenses like marketing materials, ads to grow and promote your business? Not just joining a franchise. Do you think you’re ready for that?

Brand Experience

* 4. “There is a world of difference between running a small business and running a franchise system.” Do you agree with this statement?

* 5. Do you believe in a saying that there is no elevator to success you always have to take the stairs? Meaning a successful business does not grow overnight you need to be patience to grow it, learn your mistakes, improved that mistake, never give up. Face the ups and down and continue until you reach your success.

* 6. Do you have the drive for success?

* 1. Do you believe that you can do this business?

* 2. Do you have business experience related to this type of business, even as a hobby?

* 3. Do you have the passion and ability to sell this brand? (Most franchises are sales-based.)

Litigation History

* 1. Have you confirmed that this business model is legal and has licensed to operate it where it is operating?

Financial History

* 1. Will you be able to survive your personal expenses after paying your franchise, as business does not grow overnight it needs time before making the actual earning? Especially there is a waiting period of 6 -8 weeks enclosed after the student start date?

* 2. Are you ready to host an events, prepare marketing materials provide giveaway to grow your business?

* 3. Are you facing financial difficulties at this point and need assistance to join this business?

Engaging Other Franchisees

 

Engaging franchisees within the current franchise system is an important step in the exploratory process for any franchise you’re looking to buy. Doing so will give you a sense for how successful the franchisees are, and will help you gauge your own potential success as well.

If you’re looking at buying more than one franchise, you should strongly consider going through and completing this section separately, for EACH franchise you’re looking to buy.

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Approximate time to complete: 5 minutes

* Required Information

Investigation

* 1.“It is important that you speak directly with existing franchisees in a franchise system as part of your evaluation of that franchise system.” Do you agree with this statement?

* 2. Will you be comfortable to pay annual subscription like your back office maintenance fee and website subscriptions? 

* 3. Are you ready to comply with company terms and conditions?

* 4. Have you prepared (or do you intend to prepare) a list of questions to ask the IDCI business center as part of your evaluation of the franchise system? So you can understand the system very well before you make a decision.

* 5. Do you see yourself doing this business in long term?

The Franchisees

* 1. Do you agree that the success of a business model depends from the personal effort of the Independent business owner IBO franchisee?

* 2. Are you a person that needs to be spoon-feeding in order to catch up with learning?

* 3. Are you contented with the compensation structure that the company is providing?

* 4. How serious are you with this business model?

Reference

* 1. Can you provide us 3 three-character reference?

If Yes, kindly fill-up the filed below:

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