Module 4 - Investing with the Right Franchise

Question 1

Signs of franchise scams

Answer 1

(1) to good to be true claims of profitability

(2) pressure tactics when selling their franchise

(3) absence of the list of franchises

(4) absence of the list of outlets

(5) vague company profile

(6) no company address

(7) unclear franchise agreement

(8) lack of transparency

Question 2

Franchise business social media should include the following:

Answer 2

(1) Brand
(2) List of products/services
(3) List of store location
(4) List of store promotions

Question 3

Website should include the following:

Answer 3

(1) Company profile
(2) List of company offices
(3) Brief history of company
(4) Mission and Vision
(5) List of product/service
(6) List of store location

Question 4

Due Diligence

Answer 4

(1) Visit the franchisor (number of years operating)

(2) Training (how long and extensive)

(3) Support (pre-opening and ongoing)

(4) Study financial projections

(5)

Question 5

Due Diligence

Answer 5

(1) Visit the franchisor (number of years operating)

(2) Training (how long and extensive)

(3) Support (pre-opening and ongoing)

(4) Study financial projections

(5) Review franchise agreement

(6) Check IPO registration