CHAPTER NINE

ARE YOU SUITED TO BE A

FRANCHISEE?

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 CHAPTER OBJECTIVES
• To identify a checklist of questions to ask
yourself and the franchisor before the decision
is made.
• To examine the KASH model of success

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 Questions to Consider as a Potential
Franchisee
1. Do I have the necessary background to succeed
in this field?
2. Am I financially prepared to operate this
franchise until it turns a profit?
3. Am I going into this business because I think it
will make a lot of money or because I am
genuinely enthusiastic about the industry?
4. Are the franchise fees justified? Are royalties in
line with the potential profits and sales?
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 Cont………….
5. Am I being pressured to rush my decision?
6. Is there a proven market for the service
being offered by the franchise? Does the
service have local demand?
7. What is the competition?

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 Questions to Ask the Franchisor
1. How long has the franchisor been in the industry?
2. How long has the firm offered franchises?
3. How many franchises are there? How many are in
your area?
4. Does the firm seem interested in a long-term
relationship, or does its interest end with the
initial fee?
5. Is the franchisor concerned with your background
and abilities?
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 Cont……………
6. Are you required to purchase supplies from the
franchisor? If so, are the prices competitive? If not,
are suppliers available?
7. Who is responsible for warranties and guarantees?
8. What are the terms covering renewal rights? Can
you sell, trade, or convert your franchise?
9. Does the franchisor have the financial resources
necessary to provide continuing assistance in the
future?

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 Steps to Becoming a Franchisee
Step 1: Obtain Franchisee Information Packet.
You may request a franchise information
package by submit­ting an inquiry.
Step 2: Submit Information Forms, Financial
Statements, and Resume.
Step 3: Interview/Presentation.
Step 4: UFOC Reviewed by Prospect. The UFOC
contains valuable information to help you
analyse company’s franchise system.
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 Cont……………
Step 5: Meet with Existing Franchisees. You may
wish to interview some existing franchisees.
Step 6: Information Review. The franchisor will
evaluate your information forms, financial
statements, credit forms, and background
information. Upon a mutual decision to pro­
ceed, if necessary you are scheduled for a
second interview.
Step 7: Second Interview.
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 Cont…………
Step 8: Enter Into a Franchise Agreement. If you are
approved, you may sign a franchise agreement.
Step 9: Orientation. It will include budgeting, financing,
planning, site selection, ordering, construction, and
much more. After orientation, the real estate
department will work with you to find the perfect site.
Step 10: Training. You and your management staff
attend training at the training centre.
Step 11: Complete Construction. Upon completion of
construction, store setup and on-site training begin.
Step 12: Open For Business!
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 The KASH Model of Success

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 Knowledge
• Peak-performing franchisees have high levels of
product, service, and operational knowledge
and are students of their business and industry.
• They know the business model inside and out
and execute it consistently well over time.
• They understand the nature, dynamics, and
leverage points of their business, meaning
they've identified all the activities that produce
the greatest results.
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 Attitude
• Franchisees with appropriate attitudes have a
realistic and healthy view of their business and
the franchisor.
• Attitude, or mental management, is one of the
keys to achieving peak performance in any
franchise system.
• When franchisees learn how to manage their
minds, their bodies follow.

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 Skills
• Skillful franchisees exhibit polished and
effective behaviors on the job.
• They know how to accomplish their job;
manage their customers and employees with
great effective franchisees.
• They execute their knowledge with freedom
and ease.

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 Habits
• Franchisees with good habits produce results
easily and naturally.
• They are almost unconsciously competent.
• They know what the high-priority activities
are that produce the greatest results and they
spent more time engaged in these activities
than underperforming franchisees.

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 Recap………..
• There are 7 questions to ask yourself and 9
questions to ask the franchisor.
• There are 12 steps to become a franchisee.
• The KASH model of success refer to
knowledge, attitude, skills, and habit.

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