A love of the industry you are about to invest in is not enough of a foundation for a successful franchise. Instead you need to ensure you are asking the tough questions. You need to question, question, question.

Why passion is not enough

Many people become interested in a particular franchise opportunity because they have loved it as a customer or maybe their parents ran a successful business.

You absolutely need to have a passion for the business you are considering but there is so much more to the purchase decision.

Interview other franchisees – established and new, and members of the business’ franchise council.

Truth-revealing questions

• How long has the franchise been operating?
• How much information is openly disclosed?
• Are all the franchise fees, and the services you will receive, clearly articulated?
• Is the franchisor happy to share the performance of a variety of existing businesses – established, new, large, small, country, metro?
• Exactly what weekly/monthly support will you get from the franchisor?
• What feedback mechanisms are in place within the franchise system?
• Has there been a history of disputes?
• What financials will you be asked for?

TIP: If it’s just the standard P&L, balance sheet and cash flow information, this may be a sign that commercial, modelling and decision-making numbers and ratios are not a priority. I believe this is cause to ask more questions.