What to Know Before Speaking to a Franchisor

What to Know Before Speaking to a Franchisor

By: Jack Findaro, Finance Director


The initial introduction call or meeting is an integral part of the process when deciding which franchise investment is the right one. The introduction discussion typically serves as the first time a potential franchisee speaks directly with someone from the franchise team. The discussion is basically an interview for both parties. The franchisor is typically looking to find out whether the franchisee candidate is qualified for their franchise. The most important questions they look to answer are the following:

1. Does the franchisee candidate have enough capital to make the full monetary investment and have a chance to succeed?

This is vital information a franchisor needs to know before a potential franchisee can even be considered. The franchisee needs to be able to make the full investment and have extra capital to use as working capital for the business during the initial ramp-up months until the business can sustain itself. Additionally, the franchisee should not commit too high of a percentage of their net worth to the investment that there will not be enough money to support themselves and their family during the initial growth months of the business. A common reason for new franchisees to fail is due to them not being well capitalized enough during the initial phase of the business when the business is growing and acquiring customers.

2. Why does the franchisee candidate want to invest in the particular franchise?

A franchisee candidate needs to do their research before speaking with the franchisor. Google is a terrific resource available to anyone who wants to learn preliminary information about the franchise. Basic information such as the background of the business, what the business entails, where is the franchise units are located, and what the most recent news says about the franchise. Additionally, Yelp and Facebook are great resources that can be used to see the reviews of the business, especially for consumer facing franchises.

3. Why does the franchisee candidate want to invest in a franchise, as opposed to starting their own business or continuing their current career path, at this point in their life?

A franchisor will want to know the reason for why the potential franchisee is looking to invest in a franchise. Before the meeting, the franchisee candidate should think about this question and make sure to communicate to the franchisor why they would like to invest in a franchise at this point in time. Being a foreign national that is looking for a franchise business that they can invest in, grow, and support them financially while living in the U.S. is a great story. Many people move to the U.S. for these very reasons. Regardless of the reason, the franchisee candidate should make sure that they have good reasons in mind before the discussion.

Thinking about these questions before the initial discussion will really help the potential franchisee start off on the right foot. Franchisors are looking for franchisees that will help grow their brand and that have strong potential for success. The discussion during the initial introduction call or meeting helps establish a mutual understanding of the expectations of the potential franchisee as well as what the potential franchisee can expect of the business. If the initial discussion goes well, there will be numerous more opportunities for subsequent calls and discussions in order to learn all of the details of the franchise business before having to make the investment decision.


Who Is Visa Franchise?

Visa Franchise guides investors in identifying and analyzing the best investment opportunities tailored to their specific objectives. The focus of the firm is on franchises that qualify for the E-2 (1) and EB-5 visas (2). Visa Franchise is the trusted advisor of clients from all over the world when it comes to helping them find the business opportunity that best meets their investment and immigration goals. Visa Franchise takes into consideration their capability, experience, and size of investment to ensure that they choose the best possible option for their unique, individual situation. Visa Franchise is based in Miami, Florida with offices in Orlando, Florida and São Paulo, Brazil.

If you are interested in owning a franchise please reach out to info@visafranchise.com or call us at +1-305-454-7744

Note: Visa Franchise does not make any financial performance representations other than provided by franchisors


(1) E-2 Treaty Investor Visa Allows A National Of A “Treaty Country” – A Country With Which The U.S. Maintains A Treaty Of Commerce And Navigation – To Reside In The U.S. When Investing A Substantial Amount Of Capital In A U.S. Business (Generally >$150,000)
(2) EB-5 Visa Requires At Least A $500,000 Investment In A U.S. Business That Creates At Least Ten (10) Jobs For U.S. Citizens Or Green Card Holders In The First Two (2) Years. Investors May Either Start Their Own Businesses As Active Investors Or Invest In Designated Regional Centers As Passive Investors