- How long the franchisor has been in business?
- Name and brand recognition for the franchisor and its products or services
- Whether the franchisor has a reputation for quality products or services
You’ll want to find out from the required disclosure document whether the franchisor has a federally registered trademark. If it doesn’t, a company using the same mark in your area could force you to change the name or mark of your outlet at your expense.
Complaints About the Franchise
It’s also a good idea to check whether consumers or franchisees have filed complaints against the franchise or franchisor with franchise regulators, Better Business Bureaus (BBBs) or local consumer protection agencies in your state or the franchisor’s home state. Read more about how to check out a franchise in “Additional Sources of Information” at the end of this Guide.
Training and Support Services
What training and continuing support does the franchisor provide? Does the training measure up to the training provided by other franchisors in the same type of business and for workers in that field? Can you compete with others who have more formal training? What backgrounds do the current franchise owners have? Is your education, experience or training similar? What do current franchise owners say about the quality and usefulness of the training they received?
Franchisor’s Experience
Many franchisors that operate well-established companies have years of experience selling goods or services and managing a franchise system. Some franchisors started by operating their own business. There’s no guarantee, however, that a successful entrepreneur can successfully manage a franchise system. Find out how long the franchisor has managed a franchise system. Does the franchisor have enough expertise to make you feel comfortable? If the franchisor has little experience managing a chain of franchises, take promises about guidance,
