Questions to Ask a Franchisor Before Investing

Franchising offers a proven brand with name recognition and training to help you build a profitable business. It can be less risky than starting a business from scratch and having a franchise system to glean best practices is helpful. For an initial investment and ongoing fees, you’ll get a turnkey business and the training you need to achieve your entrepreneurial vision.

Conduct Franchise Due Diligence

To understand if an opportunity is right for you, you should understand the responsibilities of the franchisee and franchisor. Conducting franchise due diligence ensures you make an informed decision.

Evaluating franchise opportunities? The Tailored Closet put together a list of eight questions to ask a franchisor to make sure you choose a smart investment.

8 Important Questions to Ask Franchisors

1. What Is My Initial Investment?

The first question every franchise prospect asks is — how much is this going to cost? Whether you’re looking at foodservice, education, or home improvement, it’s important to understand how market variables will affect your initial investment.

Startup costs should include the franchise fee, marketing fees, training, equipment, buildout costs, and other things you’ll need to launch your business. With The Tailored Closet, your initial investment starts at $155,220. We offer $44,000 in financing to help lower startup costs.

2. What ROI Can I Expect?

One of the best ways to determine a franchise’s potential profitability is by analyzing Item 19 of the franchise disclosure document (FDD), which often provides some financial insights. Speaking with other franchisees is a good way to gain a fuller sense of the kind of returns they’ve experienced in the past.

3. What Type of Franchise is It?

When you select a franchise, it’s important to understand the type of franchise you want to own. Is it a business format franchise with employees or an owner-operator option? Do you need a storefront, or can you operate from a home office? The Tailored Closet keeps startup costs low by enabling franchisees to work from a home office with only a storage facility for supplies.

Do I Need Previous Experience to Succeed?

The best franchisors care less about your industry background and more about whether you possess an entrepreneurial spirit, a passion for quality products and customer service, and a willingness to learn.

5. What Type of Training Can I Expect?

A franchise needs a solid training program to be successful. Every Tailored Closet franchisee gets intensive franchise training, with one week of virtual training and two weeks of in-person training. After you complete your initial training, you’ll start an additional eight weeks of virtual training. We also provide ongoing business support, extended franchise training, and technical support for the life of your business.

6. Is the Leadership Team Experienced?

It’s crucial to partner with a brand that has an experienced leadership and support team. Their guidance is invaluable. The Tailored Closet is part of Home Franchise Concepts, a franchisor with 10 home services brands. Home Franchise Concepts has years of franchise experience with 2,600 franchise territories.

7. What Territories Are Available?

Connections to the local community are a plus in building a business, from knowing your customers to hiring employees. Many franchisors also encourage franchisees to become involved in their communities to build goodwill and raise brand awareness. Each The Tailored Closet territory is a minimum of 100,000 households, and we review each area with you to ascertain that the territory demographics meet our viability standards.

8. Is There a Franchise Advisory Council?

One of the perks of owning a franchise is having a system of entrepreneurs to share best practices. A franchise advisory council holds franchisors accountable and facilitates problem-solving and crisis management. It can help the brand adapt to different markets and spur innovation.

Turn to The Tailored Closet to Answer Your Questions

As the largest home organization franchise with more than 160 franchises, we have expanded our potential to apply to homeowners’ every organizational need, from closets to offices, pantries, Murphy beds, and more. Even if you have no prior experience in the home services industry, The Tailored Closet provides the foundation to help you fully utilize your skills and passions to take your business to the next level.

To learn more about franchising opportunities with The Tailored Closet, inquire now.