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Monday, 12/19/2016

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• • • FRANCHISE TIP • • •

Franchise Tip
How To Start Researching

If Jeff Elgin, CEO of franchise consulting firm FranChoice, could only ask a franchisor three questions they would be:

  • What's your number-one focus? "The answer you want is 'the success of our franchisees,'" says Elgin. "But I've gotten: 'Our number-one focus is our own bottom line.' That would concern me."

  • Why do franchisees get in trouble? Try to identify exactly what's going wrong for troubled franchisees, Elgin says. If the franchisor says, "They didn't follow the system," press on by asking in what way. "You want to learn where the pressure point is," Elgin says. "What is the difficult thing to do successfully in this system?"

  • How are conflicts resolved? Ask franchisors for details of a recent franchisee conflict and how it was resolved. You'll learn a lot about the franchisor's respect for franchisees and its commitment to making them successful, Elgin says. If the franchisor says there's never been a conflict, be skeptical. "If it has more than three franchisees, it has had a conflict," Elgin says.