| 1. What is the risk involved
with franchising and how do you (the franchisor) intend to minimize that risk? 2.
What happens if I decide I no longer want to operate the franchise? Do you (the
franchisor) have a policy that requires me to pay a cancellation fee? 3.
Do you have any lawsuits against your franchise? May I see the list of lawsuits?
(Look at reasons sited to see if there is a pattern). 4.
What is your franchisee turnover rate? Can I have a list of the franchisees that
left? 5. How much money can I potentially earn? - They
should not answer this question, as the law prohibits them. Be careful of the
ones who do answer this. 6. Do the company-owned stores
provide most of the support for the parent company? (Should be a yes to avoid
over-dependence on the royalty stream). 7. Is your franchise
trademarked? (Should be because its what you are buying with the franchising fee). 8.
How long is your franchise-training program? (Don't want it to be too short/long). 9.
Can I see some of your company's financial statements? 10.
Can I have a list of all the current franchise owners close to my area? (Speak
to the owners and discover their level of satisfaction and profitability).
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