When considering buying a franchise, one factor stands out as particularly critical to your success: franchisor support. Franchisor support can make or break your franchise journey, providing the necessary guidance, resources, and assistance to help you thrive. Here’s how to effectively assess the level and quality of support offered by a franchisor.

1. Review the Franchise Disclosure Document (FDD)

Franchise Disclosure Document (FDD): This document provides detailed information about the franchise system, including the support services offered by the franchisor. Pay special attention to:

  • Item 11: This section outlines the franchisor’s obligations regarding initial and ongoing support, including training programs, advertising, computer systems, and other operational assistance.

2. Evaluate Training Programs

Initial Training:

  • Scope and Duration: Assess the completeness of the initial training program. It should cover all essential aspects of running the franchise, such as operations, marketing, customer service, and management.
  • Location and Format: Determine where the training takes place and whether it includes both classroom instruction and hands-on experience. Does the franchisor come to your location for the grand opening and for a portion of your start up period?

Ongoing Training:

  • Continued Education: Look for opportunities for ongoing training, such as webinars, workshops, conferences, and additional courses that keep you updated on industry trends and new practices.
  • Support Materials: Check if the franchisor provides updated manuals, guides, and other materials to assist with ongoing operations.

3. Investigate Marketing and Advertising Support

Marketing Plan:

  • National and Local Strategies: Review the franchisor’s marketing plan to understand the types of marketing and advertising support provided. This could include national advertising campaigns, local marketing strategies, and online/social media marketing assistance.
  • Advertising Fund: Determine if there is a national or regional advertising fund, and understand how your contributions are utilized to benefit your franchise. Understand the costs involved.

4. Analyze Operational Support

Field Support:

  • Regional Managers: Find out if the franchisor provides field support through regional managers or consultants who visit your location regularly to offer guidance and assistance.
  • On-Site Visits: Assess the frequency and quality of on-site visits to help address operational challenges and improve business performance.

Help Desk:

  • 24/7 Assistance: Check if there is a dedicated help desk or support hotline available for franchisees to get immediate assistance with operational issues.
  • Response Time: Inquire about the average response time and effectiveness of the support team in resolving issues. Does the franchisor respond to emails and phone calls?

5. Talk to Current and Former Franchisees

Current Franchisees:

  • Firsthand Insights: Reach out to current franchisees to gather insights into their experiences with franchisor support. Ask specific questions about the quality and timeliness of training, marketing, and operational assistance. Make sure especially to talk with franchisees in your region as experiences can vary across the country in different regions. Ask them: would they do it again?
  • Challenges and Successes: Learn about any challenges they faced and how the franchisor helped them overcome these obstacles.

Former Franchisees:

  • Reasons for Leaving: If possible, speak with former franchisees to understand why they left the system and their views on the support they received. This can provide valuable context about potential issues within the franchise system.

6. Visit Franchise Locations

Observation:

  • Operational Standards: Visit several franchise locations to observe operations firsthand. This can give you a sense of how well the franchise system operates and the level of support provided by the franchisor.
  • Discussions: Use these visits as an opportunity to discuss with franchisees their experiences and the quality of support they receive. Don’t just drop in though. Schedule a time to visit so you respect their time.

7. Assess Technology and Systems Support

POS and Management Systems:

  • Technology Integration: Evaluate the technology and systems provided by the franchisor, such as point-of-sale (POS) systems, inventory management, and customer relationship management (CRM) systems.
  • Technical Support: Ensure that there is adequate technical support available to help you manage and troubleshoot these systems.

8. Evaluate the Franchisor’s Commitment to Innovation

Product and Service Development:

  • Continuous Improvement: Assess the franchisor’s commitment to continuous improvement and innovation in their products or services. This shows their dedication to staying competitive in the market.
  • Adaptability: Determine how the franchisor responds to market changes and supports franchisees in implementing new practices or products.

9. Review Financial Performance Representations

Item 19: If the franchisor includes financial performance representations in Item 19 of the FDD, analyze these representations to understand the potential profitability and revenue expectations. This can give you an idea of the financial support and potential you can expect. Talk with an accountant regarding these financial representations.

10. Seek Legal and Professional Advice

Legal Review:

  • Franchise Attorney: Have a franchise attorney review the FDD and franchise agreement to ensure you fully understand the support obligations of the franchisor and your rights as a franchisee. Work to fully understand what it actually means to be a franchisee.

Professional Consultation:

  • Accountants and Consultants: Consult with accountants or franchise consultants who can provide an objective assessment of the franchisor’s support system. Their expertise can help you make a more informed decision.

Assessing franchisor support is a crucial step in choosing the right franchise. By thoroughly evaluating training programs, marketing assistance, operational support, and speaking with current and former franchisees, you can gain a clear understanding of the support you will receive. This due diligence will help you make an informed decision and set you up for success in your franchise journey.