Expert Advice

Important questions to ask your prospective franchisor

Important questions to ask your prospective franchisor

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?

Latest Advice

bfa Monthly Franchise Insights

Free franchising webinar

We use cookies to give you the best possible experience on our website. By continuing to browse this site, you give consent for cookies to be used. For more details, please read our Cookie Policy.