You’ve made an enquiry about a franchise brand, what happens next?

Expect the franchisor to phone you and have an initial chat about your plans. This is an opportunity to find out if you and the franchisor are aligned before delving deeper into the business offer.

So what will the franchisor want to know? Here are 12 questions you can expect to be asked:

1. Why do you want to buy a franchise?

A franchise is a small business but it operates under a more complex structure so the franchisor will want to know what you understand about franchising and what you perceive as its benefits. Be clear about the advantages and show you appreciate the workings of a franchise system.

2. Why have you picked this sector?

There are a myriad industries to choose from when searching for a potential business. Your choice might be passion based, founded on growth potential, or a skills-based option.

Offer the franchisor evidence that you have really thought through your choice, understand what are the drivers of success in the sector, and that you are committed to operating in this sphere.

3. What hours do you want to work?

Franchisors will favour franchise buyers who understand the demands of operating a retail food outlet, for instance, or the need to be customer-responsive if you are running a home loans business.

Are you looking for a part-time business or are you prepared to put in at least 60 hours at the beginning of the franchise term to get the business up and running?

Will you work full-time in the business, employ a manager, work after hours on bookwork?

Consider what you’re looking for and be honest in your responses.

4. What is it about our business that appeals to you?

Everyone wants their brand to be loved and all franchisors are seeking passionate operators. But it can give you an edge to express more than undying passion and show you have considered other commercial elements of the business.

Do you understand the market position of the brand? Are you impressed with the growth of the business?

5. What business experience do you have?

Some franchisors like franchisees with industry-relevant experience, others prefer newbies to the sector. Increasingly franchisors are embracing franchisees who have sales or customer service experience as these elements are key to business operations.

The franchisor will also want to know if you have ever run your own business, another franchise, or managed staff.

6. What’s your growth plan?

It’s one thing to see the potential in a franchise, it’s another to meet the goals set and develop a high performing business.

What goals will you set yourself? Do you have a clear idea about how you can build up the customer base? What do you expect to achieve in your first year?

7. How will you make money?

How you plan to make money will affect the upfront choices you make about your investment level and shape the way you run the business. Do you plan to gain a substantial profit when you sell the business? Of will you make profit as you go, and not rely on the business sale to achieve your financial goals?

8. When and where do you want to open an outlet?

Some franchisors provide site opportunities, others expect the incoming franchisee to locate suitable sites that they will evaluate. If you have a site in mind, expect the franchisor to look into this in detail.

It’s always a juggling act to balance the demands of franchisee, franchisor, lease and site availability. The franchisor might have potential sites available that they are looking to fill – these might be time sensitive, however, if the location and timing doesn’t suit you, hold fire.

9. How will you fund the purchase?

This question cuts to the core of the issue – can you afford this franchise, will you have enough working capital to trade through the initial months after opening, how much capital are you committing to the project?

Franchisors like to see franchise buyers who will put their own money at risk and invest in the business.

10. Who else will be involved in the business?

The franchisor wants to know if you plan to run this operation alone or with a partner. Will your partner be hands-on and role-sharing, or take a purely financial or advisory position?

Is this likely to be a family business? Will you be working with a best mate or business partner you have aligned with on other initiatives?

11. How supportive is your family?

Another key question for franchisors who want to be reassured that their franchisees can garner the required support from friends and family to sustain them through the peaks and troughs of business, and have a coterie of people that understand the demands of running a small business.

12. What’s your exit strategy?

Yes, it is time to think about getting out of your business even before you start! This links with the way you plan to make money (Q7) If you can demonstrate a clear path to business growth that leads to a specified exit, that gives the franchisor confidence that you grasp the fundamentals of the business, have a set goal, and the ambition to match.

Your conversations with franchisors are just a starting point of what could be a worthwhile, long term relationship. It pays to be transparent and honest with your responses; there is no value in buying into a business that is a mismatch between you and the franchisor – better to decide early that this is not for you, move on and find the perfect fit.