Top 10 List
- 1. Joseph J. Gottlieb, P.C. Of Counsel Writer’s direct dial (678) 775-3545 Email: jgottlieb@stoutkaiser.com Top 10 Questions For Prospective Franchisees When Evaluating a Franchise In helping a client evaluate a franchise opportunity, the following 10 questions need to be asked about the franchise: 1. Is there an established market for the service or product that will be offered? 2. Is there an element of uniqueness in either the product or service or the manner in which it is offered? 3. Does the Franchise include the license of a registered trademark? 4. Is there a sufficient track record of success that can be proven through franchisee validation? 5. What is the Franchisor’s financial position? Is it sufficiently strong to enable it to perform its obligations to the franchisees and grow and support the brand? 6. Is the management team experienced in franchising as well as in the franchised business? 7. Is there a viable exit strategy or is the business totally dependent on the franchisee’s direct involvement? 8. Does the business make financial sense? 9. Is the franchisee captive to the Franchisor or other limited sources of supply for the ultimate product it will sell to its customers? 10. Is the Franchise Agreement reasonably fair in its essential terms including renewal, transfer and default and termination?