Anyone considering buying a franchise business should complete a pre- entry training programme, provided free of charge in many countries. In New Zealand, a free pre-entry training programme is provided online by the Franchise Association of New Zealand (FANZ).
The programme covers many important areas critical to potential franchisees, like understanding franchising, the money side, franchise system structures, start-up support and training, franchise operations and ongoing support, and due diligence. The programme suggests a pathway for considering franchising (including franchising self-reflection), franchise due diligence and the purchase process.
Research tells us that good pre-purchase education and due diligence (including wide use of advisors) is associated with greater levels of franchisee satisfaction and/or reduced franchising conflict long-term. That is logical because good knowledge and education provides for better decisions, franchise fit and operating expectations.
Some best practice franchisors will require potential franchisees to demonstrate completion of pre-entry training – before allowing potential franchisees to advance through the franchise recruitment and discovery process.
- Have you completed pre-entry training as part of your franchise purchase process?
- What questions will you ask of yourself, target franchisors (and their existing franchisees), and the advisors you may engage, as part of the due diligence and purchase process?
About the Franchising Best Practice 500 Series
This is part of a series of franchising best practices. Franchize Consultants is sharing and publishing these best practices weekly for the betterment of franchising. We know that better knowledge and execution of franchising best practices leads to bigger and more valuable franchisor and franchisee businesses.
We have assembled the first 40 best practices into The Best Practice Handbook, which is available for purchase.