Signing new franchisee contracts, expanding the business at a fast pace looks quite exiting to everyone taking a look at franchise business. Certain folks just don't fit to be franchisors while others can't manage to stay abreast of the effort needed to get into the business and develop it into a wealthy empire. One of the hardest challenges each franchisor faces is convincing possible franchisees that opening their franchise unit is a moneymaking opportunity. Here are a couple of the questions a potential franchisee may ask you.
what type of support you provide your franchisees? Your potential franchisee is attempting to find security.
It's normal they're nervous about the training and support they're going to get.
don't undervalue this question as whether you may sign on the dotted line may rely on your answer. Explain in details what training sessions are available for your new franchisees and their staff and what support you will be furnishing them with along the path. Hand over some informative materials for further reading and leave a contact number for any future questions. What future gear upgrades are you planning to have? Your possible franchisees are aware about the fact that you've got a continuing charge for upgrades and enhancements and need to know what they are going to get in return for their cash. Even though you don't have such a charge, a future franchisee may still need to know what they'll expect vis upgrades and in what timeframes.
Transparency is the best policy here, regardless of whether you don't have planned any technical or apparatus upgrades in the future. Why I want to pay a preliminary franchise fee? Initial costs are, in eyes of folks, a fair deal of profit for franchisors. As a franchisor you are far more than aware about the fact that this isn't right. If you've got an 1st franchise charge, explain it is there simply to cover your costs for getting each sale.