1. Does the franchisor have a good reputation?

Verifying the reputation and notoriety of the franchisor or its principal directors and shareholders will allow you to determine whether its conduct, in the market in which it operates, is adequate. This research can be carried out via certain public registers, including, but not limited to, the Registrar of Enterprises , Corporations Canada , the Canadian Intellectual Property Office , civil and criminal records , as well as the Bankruptcy and Insolvency Registry . Many franchisors have seen their image tarnished by unfortunate events, hence the importance of carrying out this verification. This precautionary measure could have the effect of avoiding a disastrous impact on the franchisee's investment if he were to inadvertently partner with a franchisor facing significant difficulties.

2. Is the franchisor protected?

Another factor to consider before purchasing a franchise is to verify that the franchisor's intellectual property is indeed protected. Indeed, the protection of a franchisor's intangible assets, such as its trademarks, industrial designs, copyrights or patents, if applicable, provides a franchisor with greater protection of its market share. In my opinion, this is one of the most important elements to verify, because entrepreneurs who start a franchise network sometimes neglect to invest sufficient resources to cover these elements.

3. Is the franchisor competent?

The franchisor's experience is another element to examine. Does he know his sector of activity well? Has he implemented methods and standardization procedures to maintain a certain quality control within his network? Talking with other franchisees who are members of the network is another good way to see the competence and appreciation of the franchisor.

4. Will the project be profitable?

Finally, you need to check that the investment you are going to make will be profitable in the long term. A simple way to do this is to make financial projections with your accountant, to ensure that you will have a return on the investment in a few years.

In an era where information has never been as accessible as it is today, it is relevant to keep in mind that an exhaustive verification of certain elements, including those mentioned above, can allow future franchisees to avoid many worries by eliminating several gray areas.