When considering investing in a franchise business, one must conduct extensive research and have a list of questions prepared to ask each organization. It is advisable to enter the prospecting process with a plan and a specific list of questions for each franchisor.

The responsibility of franchise consultants is to link entrepreneurs with firms seeking to sign franchise agreements. They serve as a broker, ensuring that franchisees are a suitable fit for the organization and vice versa. People who aspire to start a business seek their assistance in determining their values and the questions they should be asking to select a brand that aligns with them.

Several franchise professionals provided the questions they recommend their clients ask franchisors before to signing an agreement:

Questions to Ask Franchisors Before Investing in a Franchise

Regarding Finances

The first question you should be discussing the financial aspects of the business first to establish if it is within your budget.

Ask, ‘What is the total expenditure?’ What are the remunerations? What operating capital is normally required, and what proportion is typically allocated to each area?

We’ll suggest being exhaustive when discussing prices and requesting precise line item figures. Ask about franchise fee, furniture, fixtures, equipment, deposits, travel fees, promotional expenses, and personnel costs. Regarding ongoing financial costs, inquire about royalties, whether products must be acquired from the franchisor, and advertising requirements.

Internal Support

It is very important to investigate the company’s support system before starting a franchise business. They recommend inquiring about the frequency of executives’ visits to stores to interact directly with franchisees and their teams, their involvement in training, and the existence of a Franchise Advisory Council (FAC).

It is crucial to comprehend the initial support the brand would provide before and during opening.

You should ask, “How well do the training programmes and support prepare franchisees to open their business and run it?” How simple does the franchisor make the process of opening and operating the first unit? Is there aid with site selection, lease negotiations, building and design assistance, financing assistance, permits, or any other unique aspects of launching this business?”

Performance & Development

The prospective franchisees must enquire about the company’s prior performance and learn about its achievements and failures. You must know that how many current franchise locations are there, and how many franchisees are no longer a part of the system, or have failed?

You must also inquire about their future plans.

“Ask, ‘What are your plans for brand expansion? Is there anything they foresee altering in the business model in the near future? This may reveal what they believe they can do as a franchisee with the brand in the United States and elsewhere. Request numbers, years, a variety of locations and geographic information, etc.

Franchisee Responsibilities

Prospective owners must also ensure that they have a clear understanding of their responsibilities as franchisees. You must inquire about mandatory convention attendance, whether they would serve as an owner or an operator (or both), whether a physical store and/or corporate vehicles are required, and what the geographical boundaries are.

If you’re are thinking about buying a franchise you should randomly call a few current franchisees and ask them about their experience as a whole,

“As a franchisee, you are subject to numerous obligations regarding payments, operations, and other responsibilities outlined in the franchise agreement,”. Make sure you have a conversation with the franchisor so that you know exactly what is expected of you as a unit operator.” In addition, it is essential to inquire about the major obstacles most franchisees face in order to determine if the franchise opportunity is a good fit for you to make money.


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