Franchise Genius Checklist - Franchisee Research

Franchisee Research Checklist

Note: Talk to as many franchisees as you can to get an accurate picture of the entire system. You should contact franchisees who have been open at least one year and have gone through all seasons. It’s also a good idea to make sure you have talked to at least one of several different types of franchisees:

Single unit operator
Multi unit operator
Operators in markets with low unit density (known as “Outlying Markets”)
Members of the Franchise Advisory Council

General Questions for All Franchisees

How much can I expect to make each year?
How long after your purchase of this franchise did you become profitable?
What were your initial costs (how much higher or lower than expected)?
How debt did you incur to open your store and how much did that cost you?
Were build-out costs much higher than anticipated? What caused overruns?
How long did it take you to open after your initial signing?
Were the working capital figures provided in the UFOC accurate?
Who is your franchisee support person (by name)?
How often do you see a corporate representative?
What is their primary function when you see them (training, compliance, unit growth)?
How responsive is corporate to your needs? To your suggestions?
What is the one thing you would change about the system?
What kind of support did corporate provide for your grand opening?
What is the best part of being a franchisee in this system?
What is the worst part of being a franchisee in this system?
If given the option to do it over, would you purchase this franchise again?

Questions Specifically for Former Franchisees

Why did you close?
When did it become apparent that closing was an option?
What kind of support did you receive?

Questions Specifically for Outlying Markets

What is the brand awareness in your area?
How did brand awareness affect your grand opening?
How does brand awareness affect your marketing tactics?
Did you receive extra support due to low store density/awareness in your market?
Has the company talked about expansion plans in your area? Have they made promises they haven't kept?
Are there required items that you have difficulty getting due to distribution? Are your cost of good higher due to your remote location?
How often does a representative visit your location?
Do you have any special dispensations with regards to marketing fund contribution due to your lack of brand awareness?
Are you able to organize an advertizing "co-op of one" with matching funds from the marketing fund?

Questions Specifically for FAC Members

How receptive is corporate to new product ideas?
How responsive are they to competitive pressures at the unit level?
Are there any new products or services planned for this year? How are they tested?
Does the council audit the corporate books or the marketing fund?

Questions Specifically for Multi-Unit Operators

Do you have a staff member who is shared by all units that would be cost prohibitive for a single unit (catering manager or sales representative, for example)?
What economies of scale are realized with multiple units that a single unit cannot realize?

To view additional articles on franchise opportunities and compare profiles of more than 1,800 franchises for sale, please visit www.FranchiseGenius.com

This publication is copyright 2008 by Franchise Genius LLC. This copyright notice and any embedded links within this publication must remain as part of this document.

Brilliant
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Club Z! In-Home Tutoring
$1

Club Z's one-on-one tutoring program helps students improve their grades, raise their test scores, learn productive study skills, build their academic self-confidence, and reach their full potential. Club Z provides highly individualized instruction in the comfort and security of home, free from distractions. Tutoring sessions may also be scheduled at schools, after school facilities, libraries, or community centers. Club Z serves all ages, pre-kindergarten through adult, and tutoring is available in all core subjects - reading, mathematics, science, history - as well as study skills, foreign languages, standardized test prep, assessment testing such as ACT and SAT, music lessons, and much more.

Kidville
$60,000

Named Best of by New York Magazine and given a five star extraordinary customer rating in The Lila Guide: New Parent Survival Guide, Kidville operates large, upscale facilities, catering to young children and their families. In addition to offering a wide range of developmental classes for newborns through six year olds. Kidville also features an indoor playground, a retail boutique, the Kidville Salon and birthday parties for children up to age nine. There are currently two investment levels. 1. Our Stand Alone Annex Model (3,350 square feet) investment level is $198,150 -$262,900. 2. Our Hub Model (8,000+ square feet) investment level is $615,560 - $777,400. You are able to choose the model that best suits your community and investment level.

Acti-Kare
$25,000

Acti-Kare helps seniors remain in the comfort of their own homes, and as a franchise owner, you will be able to help families in your own community help their loved ones live happier, more active lives.

The Maids Home Services
$100,000 - $150,000

Distinguished as the number one residential cleaning franchise since 2007 and the Fastest Growing residential cleaning franchise five years running by Entrepreneur magazine, the Maids Home Services is the quality leader in the industry. The Maids was founded in 1979 and began franchising in 1980, so franchise partners benefit from a time-tested cleaning system and business model based on leading-edge technology. The Maids provides the most comprehensive package of training, support, and territory in the industry. We provide extensive training, including seven weeks of pre-training and 10 days of classroom and field training. We are in touch and involved with the new franchisee a minimum of 195 days within the first year. Our franchise partners service over 1000 territories in the United States and Canada. We still have many great markets available. With The Maids, you can build a great business and achieve the lifestyle you desire, all with nights, weekends and holidays off. T

Math Monkey Knowledge Centers
$60,000

Math Monkey reintroduces math to children ages 6-14 in a way that is fun, challenging, and something they can master. Math Monkey's curriculum uses games and puzzles to engage children in math and gain confidence.

Firestorm Franchising
$50,000 - $115,000

Firestorm provides crisis management, risk mitigation, & business continuity & pandemic plans. Our PREDICT. PLAN. PERFORM. Process creates a strategic advantage for clients to outperform competition.

Mathnasium Learning Centers
$55,000 - $74,500

Mathnasium is a learning center where students go year-round to boost their math skills. The program is for students in pre-K through 12th grade. Mathnasium's goal is to significantly increase the child’s math skills, understanding of math concepts, and overall school performance, while building confidence and forging a positive attitude toward the subject.

CTi Concrete Technology
$9,500

Concrete Technology resurfaces decks, walkways, driveways, patios, interior floors, and swimming pools, giving them the look of stone or any other look desired by the customer. The CTi system is more durable and fade resistant that concrete, and is less expensive to install than removing existing and reinstalling surfaces. CTi provides free estimates.