What to Ask in Investigating a Franchise?

Prospective franchisees must spend some time investigating the franchises 

About the franchisor

How much support do you get?

Are you satisfied with the franchisor?

Is the franchisor fair and easy to work with?

Does the franchisor heeds your concerns and accepts input from the franchisees?

Have you had any disputes and, if so, were you able to settle them?

Do you know of any trouble the franchisor has had with other franchises, competitors or the government?

Has the franchisor kept its promises?


Is your franchise profitable?

What are your gross revenues?

What have your pre-tax profits been for the past three years?

What is your salary?

How is your cash flow?

Were the franchisor’s start-up costs and working capital requirements accurate?

Were the franchisor’s profit projections and earnings claims accurate?

How long did it take you to break-even?

Have you made the profit you expected to make?


Was the training by the franchisor adequate?

Was the training by the franchisor effective?

Products and services:

Is the product or service you sell of good quality?

Is delivery of goods from the franchisor adequate?

Are you getting supplies more cheaply from the franchisor than you can on your own?

What does the franchisor supply?

Advertising and marketing:

How much do you spend on advertising a month?

How effective is the regional or national advertising?

Do you think you are getting good value for your advertising spent?

Are you satisfied with the marketing and promotional assistance the franchisor has provided?


How effective are the operational procedures?

Have the operations manuals helped you?

What do you think of the manuals?

Are the manuals updated on a regular basis?

What did you do before you bought the franchise?

Describe your day.

How many hours a day do you work?

How many hours a week do you work?

How much freedom do you have to make decisions?

Are you happy with your investment?

Are you disappointed in any aspect of the business?

Is there anything about the business you do not like?

What do you like most about the business?

What kind of problems do you encounter?

What do you like least about the business?

Would you do it again?

Would you recommend I buy a franchise?


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