What information will a franchisor request from a prospective franchisee?

First of all franchisors are going to want to know that you have the financial wherewithal to take on a franchise and will need to establish your financial position, your credit worthiness, the equity in your house and so on. The cost of a franchise is not only the initial fee you will have to pay, but also your working capital requirements to fund your business. For most franchises you will have to borrow from one of the clearing banks with whom the franchisor has made arrangements to finance its franchisees, but the banks must be satisfied that either there is sufficient security for any loan or that you will be able to repay it.

Other factors that a franchisor will take into account are whether your family is fully behind you in taking a franchise which, in effect, means that you will be operating your own independent business so that in the early days you will not be able to take holidays and will be working extremely hard.  In addition, franchisors will check whether you have a criminal record and will try to establish any business experience although, in many franchises, past business experience is not essential because franchisors will train you and provide assistance.  Lastly, and perhaps most important of all, the franchisor will seek to establish the extent to which you will through hard work, determination and using your skills be likely to make a success of the business. Whilst undoubtedly franchisors can give you the basic system, how successful you are with that system will depend on your own efforts and abilities.