How to Prepare For a Franchise Interview

If you have researched different franchise opportunities and settled on one or two of these, the next part of the process is to go through the interview with the franchisor. Although many prospective franchisees may find this step quite daunting, remember that it is a two-way street where both parties get to know each other better for the purpose of creating a long-lasting business relationship.

If you aren’t sure of what you can expect from the interview process, below we’ve set out some franchise interview questions and model answers that you will be asked and you should ask your franchisor. But before that, we also take a look at how to prepare for your first meeting and share some tips to help you stay more organised. Let’s take a closer look.

How to prepare for a first-time meeting with a franchisor

Because every franchisor is different and has their own established processes, it is difficult to pin down exactly what will make you best prepared for your first meeting with them. However, there are a few important factors in terms of what to expect from the first franchise interview that we’ve put together to help you prepare better. Here they are:

Step 1: Anticipate potential challenges

One of the first things you should do before your interview is to do your research into the franchisor and the industry they operate in. This will give you an idea of what potential challenges you might face as a business owner. When you are aware of such challenges, you’ll be better positioned to prepare for them. For example, a franchisor might have contingency plans for major business shifts, but do you? If not, how will you manage such developments?

Step 2: Get clarity on your finances

Practically every franchisor requires payment of the initial franchise fee and a certain amount of liquid capital to kick-start the investment. You should know where you stand financially before you speak to the franchisor and you should also be sure that you have between three and six months’ worth of capital to cover any unforeseen expenses.

Step 3: Gain insights from current franchisees

Although many current franchisees may have signed non-disclosure agreements, there may be the option to talk to some who haven’t. Doing this will give you insights into the real and true operations of the franchise business, what the internal culture is like and an overview of what you can expect on a daily basis. This is invaluable information that you’re unlikely to find elsewhere so make sure you don’t miss this step.

Tips for the franchise interview

Having done your research, there are a few more things to bear in mind before you walk into the franchise interview. Here are our tips:

• Honesty is the best policy as any untruthful statements will emerge later anyway
• Don’t hesitate to take notes to compare information from different franchisors and sources
• Be as thoroughly prepared with all your paperwork as possible
• Be open to the process and willing to cooperate with the franchisor and their team

Franchise interview questions you might get asked and how to answer to them

With all the preparations you’ve already made, you are almost ready for the interview. And as promised, here we provide you with some common franchise interview questions and answers as well as their intended purpose, which we hope you’ll find helpful!

What are your short- and long-term goals? How long are you willing to work?

Here, the franchisor is trying to gauge whether your goals are compatible and whether you can achieve your goals together over a long-term period as that’s typically the duration of a franchising relationship.

Sample answer:

“My short-term goal is to successfully establish my franchise unit within six months while staying within my budget and my long-term goal is to build my business and purchase two or three more units by the end of year five, which I would then like to pass on to my family members before I retire.”

Do you have prior experience in franchising?

If you do have previous experience in franchising, this can make you a strong candidate in the franchisor’s eyes because they know you’re able to follow a proven business model from start to finish. However, if you don’t have experience yet, you can use your skills as a launchpad to indicate why they make you a strong franchisee candidate.

Sample answer:

“Although I do not have prior franchise experience, I bring many skills to the table including leadership, teamwork and collaboration, strong communication, excellent organisation and time management skills as well as attention to detail, which I believe can help me thrive in your organisation.”

Why did you choose this business/sector/industry and do you have any experience in it?

When considering what to ask in a franchise interview, franchisors often ask this question to gauge your passion for the industry and for their particular business as well as whether you have any prior experience that can help set you up for success with them.

Sample answer:

“I have always wanted to be my own boss while [looking after children]. The opportunity to provide [child care to parents] in my area perfectly aligns with my personal and professional goals as I like the intensity of the work and its rewarding nature. My previous experience as a teacher in a primary school has equipped me to handle all types of children with varying skills, backgrounds and ability levels.”

How will you finance your business and when do you anticipate to reach a break-even point?

When it comes to what a franchisor is looking for in franchisees, one of the biggest deciding factors (although not the only important one) is the ability of the franchisee to finance the operation and to ensure that they will be financially solid to cover living expenses over the next few months as they get training and get the business off the ground.

Sample answer:

“In terms of net worth, I possess XYZ in terms of liquid capital, of which ABC is savings, EFG is financing I will receive based on my home mortgage, and HIJ is the value of my movable assets. As such, I am well prepared to fund this business opportunity in terms of the anticipated financial requirements in their entirety and I foresee that I will reach break-even point within the first eight months of launching my franchise unit.”

What type of support structure do you have when it comes to starting your own franchise business?

Here, the franchisor wants to know that you are supported by your family/partner/spouse because this can be a powerful dissuading factor further down the line. The franchisor may even ask you to bring your spouse along to the interview or during Discover Day proceedings.

Sample answer:

“My spouse/partner is fully aware of my ambitions to start my own business with a well-established brand and I have their full support – both financial and emotional – to help me continue with this opportunity. In fact, I plan to take them on board as my General Manager and we will jointly run the business together.”

Why did you select us and why do you think we are a good fit?

With thousands of franchise brands and even more industries to choose from, the franchisor will naturally be curious about why you are knocking at their door in particular.

Sample answer:

“After carrying out my research and studying your franchise’s values and culture, as well as your positioning in the industry, I believe that we are well aligned and able to create a strong fit in an effort to foster a mutually beneficial and healthy relationship.”

When and where are you looking to open your franchise unit?

This question speaks directly to the technical nature of your future business and should also align with your short- and long-term goals, in addition to a location where you can comfortably operate from.

Sample answer:

“Having been situated in Leeds for over 15 years and with my familiarity of the location, I believe that opening within the next four months in the area of ABC will enable me to start earning within the anticipated time frame and getting returns on my investment.”

What is your exit strategy?

Top franchisors understand that you need to have a clear picture of the entire duration of the business relationship from start to finish.

Sample answer:

“After five years in the business, I aim to sell my unit to a family member/purchase two additional units depending on my current unit’s financial performance/resell the franchise unit, etc.”

Final remarks

Although the above is not an exhaustive list of questions your franchisor might ask you, it is a great starting point that you can be prepared for. And as mentioned earlier, the franchise interview should be a two-way street where you can also ask your franchisor important questions before you buy.