The journey into franchising is an exciting one. But before you sign anything, you should be sure to ask the following questions to your prospective franchisor, ensuring you get a full picture of the company and what any agreement entails.

On their business

• How long have you been franchising?
• May I speak with your franchisees, and may I choose who?
• What does your head office support team comprise of, and can I meet them before I start my business?
• How many franchisee failures have there been since you started?
• How do you choose your franchisees? Do you turn people away?

On costs

• How much is the franchise fee, and what does this include?
• How much working capital will I need?
• May I see financial projections and are these based on actual performance within the network?
• Did you run a pilot or company owned franchise before you launched? If not, why not?
• Can you assist me with raising finance and will the finance company require security?

On methods

• What ongoing fees do you charge, and what are they for?
• Do I have to buy products from you and if so, do you take a commission? Does this include equipment too?
• What do you spend on marketing / advertising, and do I have to contribute?
• Will there be a promotion when I launch my business, and is this included in my franchise fee?
• Where is the training, and do I pay for that?
• Once my business has started, what continuing services will you provide me with?
• Can I see a copy of the franchise agreement?
• Can I sell my business? Are there any restrictions that affect my rights to do so?
• How long is the franchise granted for? And what happens at the end of the agreement?

On your involvement

• Can I end the agreement early / terminate the contract?
• What point of sale and promotional literature do you supply? And do I have to pay for this?
• Will I own the equipment necessary to operate the business once any finance has been cleared?
• Do I have to commit to refurbishment / redecoration and equipment replacement?
• Do I look for a premises or do you find them for me?

On communication & operations

• What systems do you have in place for keeping franchisees in touch with you and each other? Do you hold regular franchisee meetings?
• Do you provide instruction and operation manuals?
• If I run into operational problems I am unable to solve, what help and support can I expect?
• Are you a member of the British Franchise Association? If not, why not?