|What are the restrictions regarding suppliers?|
Must you buy supplies from selected sources? If so, are these likely to be more expensive or less reliable than other potential sources?
|What kind of regional protection is provided?|
Are there restrictions on how many franchises can open in selected areas? Get these aspects clarified in writing before signing up.
|Are there opportunities to build an empire?|
While you will not want others to open a franchise in your selected area, you may want to build up your own chain of franchises. Is this allowed?
|What’s the failure rate for franchises?|
How many franchises fail in the first year or so? Are the failure rates higher or lower for your selected franchise, and are the statistics better or worse in your selected area?
|How many franchises sell out each year?|
What’s the turnover rate for your selected franchise? Franchises that are sold are not necessarily reflected in the statistics for failures and indeed, many successful franchises are sold out.
|What’s the value for a re-sold franchise?|
While looking at the proportion of franchises sold out, assess the value for those franchises re-sold, are they typically sold for a profit or loss?