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Important Questions to Ask a Franchisor Before You Buy

Updated: Jun 3, 2021


Questions to Ask a Franchisor

At this point, there are likely just a few people who haven't had pizza or at least heard of it. It's one of the most well-loved foods in the world, and with good reason. Pizza delivery is convenient, has so many flavour combinations to choose from, and most importantly, it's absolutely delicious. What if you could turn your tendency to order pizza into a business opportunity?


Buying a franchise of a pizza place would definitely be a great way to make pizza more than just a way to fill your stomach. It could help fill your life with enriching experiences, and—of course—help fill your bank account down the line.


There are several steps to be taken before the purchase of any franchise. A key move is to ask the right questions when you're talking to the franchisor.


What are some important questions to ask a franchisor before you buy?


- How Much Capital That's Liquid is Necessary to Cover Things Until Breaking Even?


Initial start-up costs are only one part of the capital. It's key to also have operating capital, typically for several months up to a year, until the business is able to break even. Be sure that you have a clear timeline as to when the average franchisees are able to turn a profit. This will let you enter things well-prepared financially.


- How Much is the Total Investment Before Doors Can Open?


Initial investments for beginning a franchise range from a couple thousand dollars to well over a million. Aside from the franchise fee, there are additional start-up costs: equipment, licenses, real estate, and more. Ensure that you're able to have an in-depth talk with the franchisor about each item. This way, you'll be able to understand the investment clearly as well as what's necessary in terms of funding so you can get things going.


- What Criteria are in Place When it Comes to Selecting Franchisees?

There's generally a standard list of personality traits and qualifications that franchisors refer to in terms of people who will fit their brand best. Make sure you're able to look into that criteria so you can figure out whether or not your skill sets and personality are a match.


- What is the Franchise's History Like, Beginning From When it Was Founded? What is the Background of the Executives?

Ask about the founders, especially if it's a company that's been around for some time. Learn what motivated them to start the business in the first place. See if you're truly passionate about the industry you're looking into, and if you have skill sets that are similar to that of the founders. It's not all about the experience of the franchisor! The business's very fundamentals should be something that you're able to identify with.

Conclusion

Pizza is delicious, but even more so when it's also proverbial bread and butter! If you’re looking to franchise your favorite pizza place, it's key to have a good talk with the franchisor. This includes asking questions about how much operating capital will be needed, the franchise history, and the qualifications of potential franchisees.

Looking to franchise a pizza restaurant? Get in touch with Pictou County Pizza today! We serve the famous pizza recipe which was created by our family in 1966.


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