12 Franchise Interview Questions For Aspiring Franchisees

Franchise businesses offer a proven system of operations, established brand recognition, and support from franchisors. Successful franchises have gone through rigorous screening and validation processes. One of the most critical aspects of this process is the franchise interview. Here are ten common franchise interview questions and how to answer them.

1. What are your goals?

The franchise owner and the franchisee have goals in their mind before running the business. But the question here is – are your goals compatible? The franchisor’s primary goals include a successful unit that generates a continuing royalty stream and a long-term relationship with its franchisees. As an aspiring franchisee, your goals may be the same. Sometimes, they also are more complex. 

How about the number of units you want to build? You might consider owning a single-unit franchise or plan to acquire more units in the coming years. Understanding each party’s goals will answer many questions as you go through the franchising process. 

2. Do you have experience in franchising?

The franchise owner may also ask if you have any experience in franchising. Franchising differs from corporate and self-employment. Some people need help adapting to franchising. Running your own business but under the restrictions of the franchise agreement may appear challenging. If you have experience in franchising or have worked for a franchise company, you will better understand a franchise business that suits you. 

3. Why did you choose this industry or sector? 

Another crucial question in the franchise interview is your decision to choose a particular industry. This time, the franchise owner wants to hear how much you admire the sector. Good franchisors will value passion as a critical element in the success of their franchisees. 

4. Do you have experience in this industry?

Experience in the franchising business is always an advantage. Any business can be learned. However, combining industry-specific knowledge with the strength of a solid franchise system could be the right formula for success.

5. What is your family’s reaction to your decision to buy a franchise?

Having the support of your family, especially your spouse or partner, is a powerful asset you can offer. Some franchise owners will require the candidate’s partner or spouse to attend specific meetings and seminars. 

6. What is your business plan?

The franchisor wants to know how you plan to operate the franchise and grow the business. Your business plan should contain a marketing strategy, target market, financial projections, and growth plans. It’s essential to show that you clearly understand the franchise’s business model and that you can execute its operations effectively.

7. How will you finance this business?

In franchising, it is essential to have cash reserves to keep your new business growing. Franchisors will ask about your net worth and liquidity. They want to ensure you have enough funds to keep the business running.

8. Do you expect to earn money in your first year of operations?

The answer to this question is simple: most franchisees earn money slower. If a franchisor makes contradicting assumptions, do the math! Talk to the brand’s existing franchisees and ask them about their first year. Then, recalculate. 

9. How will you manage the day-to-day operations?

Franchise businesses have established systems and operations that franchisees must follow. The franchisor wants to know how you will manage the day-to-day operations while adhering to the franchise’s system. It would help if you showed the interviewer your skills and experience in running the business efficiently and effectively.

10. Why do you consider us (the franchise owner) a good fit?

Finding a franchise brand that “fits” involves your and their values. Companies have their own culture and values, and you have your own. The success of the franchisor and franchisee depends on a healthy working relationship.

11. When are you looking to start business operations?

Timing is essential for the franchisee’s financial future and the long-term success of the franchisor. A franchisor planning to expand into a new market may be more aggressive than you are. And this can work against your plans. In this section, both parties may decide on the timeframe and location of the franchise unit you plan to buy. 

12. What locations are you looking at?

Home court advantage says a lot, whether in sports or franchising. If you know the area where you’ll be doing business, your odds of success will be significantly improved. Franchisors know the added strengths local connections and community involvement bring to the party.

Conclusion

The franchise interview is a crucial part of the franchisee screening process. These twelve common questions assess the franchisee’s motivation, experience, financial resources, business plan, operational skills, marketing strategies, and long-term vision. During this interview, the owner also uses the opportunity to gauge the aspiring franchisee’s ability to handle challenges. By understanding these questions and preparing thoughtful and honest answers, franchise candidates can increase their chances of being selected as a franchisee. Similarly, it will prepare them for success in their new venture.