10 Questions to Ask a Franchisor During the Research Process

10 Questions to Ask a Franchisor During the Research Process

10 Questions to Ask a Franchisor During the Research Process

Premium Service Brands (PSB), a leading franchisor in the home services industry, is ready to help you find out what questions to ask a franchisor during your research and interview process to get detailed insights and thoughtful answers.

There are nearly 805,000 franchise locations in the U.S. employing at least 8.7 million people, according to the International Franchise Association[1]. Franchising offers a path to business ownership for people who want to chart a new course with training and ongoing guidance. The franchise model has a proven business concept, established brand recognition, and a support system. Franchisors often provide marketing support, including advertising campaigns, promotional materials, and marketing strategies, which can help franchisees attract customers. But before you dive in, it's essential to do your research and ask the right questions.

PSB is the franchisor of nine brands in the home services industry, including 360° Painting, ProLift Garage Doors, Maid Right, and The Grout Medic. We’ve been helping entrepreneurs achieve their financial and lifestyle goals for more than 16 years. Find out the common questions we hear from franchisees to help you navigate your research and interview process. We’ve compiled a list of questions to ask a franchisor to help you make the best decision. Let’s get started.

  1. What is the total investment required to open a franchise?
    Understanding the financial requirements is crucial. Ask about the initial franchise fee, equipment costs, inventory, working capital, and other expenses to help you assess whether the franchise fits your budget and financial goals. The initial investment for a PSB brand ranges from $103,850 to $150,000.
  2. What kind of training and support do they provide?
    A strong training and support system is vital for your success. Ask about the initial training, ongoing support, marketing assistance, and other resources the franchisor offers. Having the resources to equip you to run your business will improve efficiency.
  3. What is the ideal franchisee profile?
    Ask about the skills, experience, and qualities they look for in a franchisee. Choosing a company with a culture that aligns with your values is a building block to a successful partnership. PSB is searching for candidates with business and leadership experience who want to take charge of their future by becoming an entrepreneur. We’ve already done a lot of the heavy lifting, so you’ll have a proven business model designed to get you on the right track. We want partners who focus on collaboration and have a good local knowledge of their target market.
  1. How long does it typically take to break even?
    Knowing the expected timeline for profitability can help you plan your finances. Ask about the average time it takes for a franchisee to break even and start making a profit. You can also explore the brand’s Franchise Disclosure Document (FDD) for a more detailed look at startup costs and, in some cases, financial results for the previous year.
  2. What are the key performance indicators (KPIs)?
    KPIs can help you set realistic goals and measure your progress. Ask about the metrics the franchisor uses to evaluate franchisee performance. Knowing what’s expected and how to succeed will help you make projections and set goals.
  3. Can you speak with current franchisees?
    Getting perspective from current franchisees can be invaluable. Ask for a list of franchisees you can contact to learn about their experiences and successes. They can give you an idea about lessons learned and challenges you’ll need to overcome.
  4. What is the franchisor's growth strategy?
    You can better assess the long-term potential of the franchise when you understand the franchisor's plans for the future. Ask about their growth strategy, expansion plans, and how they plan to stay competitive. PSB focuses on brand stacking to help give franchisees a competitive edge. Brand stacking allows franchisees to own multiple brands in the same industry or market. Stacking complementary brands increases market share, improves customer loyalty, and boosts revenue. It also trims customer acquisition costs by leveraging existing clients.
  5. How do they handle conflicts with franchisees?
    Conflicts can arise in any business relationship. Ask about the franchisor's approach to conflict resolution and how they handle disputes with franchisees. Franchisors should be approachable and willing to listen to franchisees' concerns and grievances. Regular check-ins and meetings can help prevent misunderstandings and build trust.
  6. What is the franchisor's exit strategy?
    Understanding the exit strategy can help you plan for the future. Ask about the process for selling your franchise, the terms of the franchise agreement, and any restrictions on transferring ownership. Understanding their exit strategy will help you create an exit strategy of your own.
  7. What sets the franchise apart from the competition?
    The unique selling points of the franchise can help you assess its potential. Ask about the competitive advantages, market positioning, and what sets the franchise apart from others in the industry. PSB’s brands are low-investment, high-reward opportunities. PSB prides itself on providing valuable services to the communities its franchisees serve. In addition to home services, we have a nonprofit to give communities a boost. Kids-Lift partners with schools, organizations, and groups that serve at-risk children and their families by running specific, targeted in-kind donation campaigns to give back to the communities they serve.

When asking these questions, listen for thoughtful, detailed answers that show the franchisor's commitment to your success.

A Future in Home Services

Partnering with PSB can help you launch a successful home services business in a thriving industry. The home services industry is worth an estimated $657 billion in the U.S. and is expected to continue to grow. The pool of customers who need home services is rapidly expanding as millennials dive into home ownership.

In 2022, millennials turned a corner as the majority made the switch from renting to homeownership, according to RentCafe. Housing affordability and generational values delayed their journey to home ownership. The average millennial bought their first home at 34 years old, which is later than older generations.

Look for a franchisor that aligns with your values, offers strong support, and has a proven track record of success. Our network of franchisees includes a dynamic mix of marketing, business, finance, and HR professionals that thrive on self-motivation, innovation, and collaboration. PSB's values include cultivating a passion for work, treating all individuals with respect, honoring and delivering on promises, striving for continuous improvement, building a foundation of honesty and integrity, and viewing customer service as a way of life.

Steps to Ownership

We have franchise territories available across the U.S. and Canada. Carve a new path for your future in the home services industry with PSB. Get started to connect with a franchise business consultant from our team to learn more about our brands.