As a prospective franchisee, there are many things you have to do the get the necessary information about your potential franchises. One of them is speaking with many franchise owners of each parent company. But there’s another thing you need to do, especially if the franchise business requires face-to-face interaction with customers: visiting the franchisees at their physical stores in person. Continue reading to learn why you need to spend time with the franchise physically and what you stand to gain by doing so.
Why Visit Franchisees?
One reason to visit franchisees is to see how your potential business works in real life.
Until you go to the franchisees’ place of work, you can only imagine how the business operates, what it looks like, and what the day-to-day operation is like.
Notice that the keyword here is “imagine.” It’s only when you spend time in the actual business that you will understand how the franchise operates and the role you will play as a franchisee.
Even though it’s okay to speak to franchisees over the phone and ask important questions, it’s much better to meet with them in person.
A common mistake to avoid
However, you need to avoid the mistake of going to the franchisees’ place of business too early. Let’s tell you why. At the initial stage of the franchise buying process, you are unlikely to know much about the brand, how things work, or whether there’s availability in your area.
Also, franchisees will be able to know who you are from your questions, as you will end up asking questions that their customers don’t normally ask. If that occurs, the franchise operators may begin to feel uncomfortable and concerned that another person is planning to open in their area.
Bear in mind that franchisees usually have a protected territory, so they have no reason to worry. They may still be worried, though.
Lastly, when you finally open your franchise, you will want to maintain good relationships with other branches of the company in your area. Why? Because you might end up doing promotions and marketing campaigns together or need their assistance with something in the near future.
Okay, when is the right time to visit franchisees? You should only visit franchisees in person when you understand the franchise business model and are well along the path to becoming a franchisee.
Before paying in-person visits to franchise owners, it’s also good to have had loads of phone calls with multiple franchisees. By doing so, you will know the things to look for and the right questions to ask when you finally meet.
Tip: Make sure to visit two or more franchise businesses since not all locations are alike. Besides, every store has its own management style.
What you should do during your visits
The main reason for visiting franchisees is to ask questions and see how they operate. And the great news is that the franchise owners you visit will expect you to ask plenty of questions. So, feel free to ask your queries. The questions will come naturally to you since you have already gained a lot of information from the conversations with franchisees prior to your visit.
For instance, when you are at the location of the franchise business, you may ask how the owner found the location. Did the franchisor render any assistance? How much help did the company provide? Can they provide tips on how to find a suitable location?
Here are some other questions you need to ask:
- How do you hire your employees?
- What’s the situation with your employees? Do you have a lot of turnovers?
- Is your store big enough for you?
- How many hours do you spend here?
- How are your sales doing? Are they close to what you envisioned? How are your profit margins?
- What are those things you wish you knew before opening your franchise business?
You also need to observe what’s happening in the business
Does the business seem well organized and professional?
Is this something you would like to do?
Do you think you will be able to succeed as a franchise owner?
Lastly, you can also take some photos of the inside and the outside of the business as long as the franchisee is not against it. Those pictures will remind you of some of the things you saw and felt during your in-person visits.Bottom line: As a prospective franchisee, it’s important to visit multiple locations of the business you are interested in when the time is right. Once you are there, ask plenty of questions and observe how the franchise business operates. By doing so, you will be able to know if the franchise model you want to invest in is the ideal one for you.
