Doing the research

20 questions to ask the franchisor 

Sarah Stowe

It’s important to ask about all elements of the business when you are considering purchasing a franchise.

1. How long was the business operating before it became a franchise network?

2. How experienced is the franchisor team?

3. What is your financial investment in the business?

4. Who owns the intellectual property?

5. When was the last brand refresh?

6. What peaks and troughs are there in the business?

7. Are there any financing arrangements?

8. Are there company-owned units in the chain?

9. How many franchisees renew their agreements?

10. Who will be the main point of contact for me as a franchisee?

11. How do franchisees and the franchisor connect with each other in the network?

12. How do you help underperforming franchises?

13. How often will I need to refurbish the store or update equipment?

14. Is there a call centre for leads and how are these dispersed?

15. How much control will I have over any ordering and choice of supplier?

16. Will I get any help with staff recruitment and training?

17. What minimum orders or benchmarks to I have to meet?

18. Is there an optimum time to open a business?

19. Who finds the site?

20. What are the criteria you use to select franchisees?