{"id":3985,"date":"2020-03-16T14:57:27","date_gmt":"2020-03-16T18:57:27","guid":{"rendered":"https:\/\/winfranchising.com\/?p=3985"},"modified":"2026-05-03T16:39:27","modified_gmt":"2026-05-03T20:39:27","slug":"questions-to-ask-when-buying-a-franchise","status":"publish","type":"post","link":"https:\/\/wini.com\/franchise\/questions-to-ask-when-buying-a-franchise\/","title":{"rendered":"Key Questions to Ask When Starting a Franchise"},"content":{"rendered":"\n

When doing your research on purchasing a franchise, the questions you ask current franchisees could be very informative. These professionals have done what you\u2019re looking to do, so their opinions are invaluable.<\/p>\n\n\n\n

Some franchisors encourage or require you to speak with current franchise owners to get an in-depth perspective on the industry and what it is like to be part of that system. If the franchisor you are interested in requires you to have such conversations with its franchise owners, it\u2019s a positive sign for you as a prospective franchisee.<\/p>\n\n\n\n

No matter how much research you do on a specific franchisor, it\u2019s impossible to fully understand what you will experience without hands-on involvement. However, the next best thing is having honest and thorough discussions with those who have that experience.<\/p>\n\n\n\n

Pro-tip:<\/strong> Focus on how the franchisees view the franchisor based on the last 2-3 years.<\/em><\/p>\n\n\n\n

This will give you the most accurate barometer of your potential success in the franchise system.<\/p>\n\n\n\t\t\t\t

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  1. Questions to Ask the Franchisor<\/a>
  2. Questions to Ask the Franchisee<\/a>
  3. Is There Anything Else I Should Know?<\/a><\/ol>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\n\n\n

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    Before you enter the world of franchising, it\u2019s also important you assess your needs and whether they align with those of a franchisor. While you gain a lot of support, instant brand recognition, and a competitive advantage, as a franchisee, you will not have full reign over certain aspects of the business. Here are some questions to ask yourself to help you determine if you\u2019re ready to be a franchise owner:<\/p>\n\n\n\n

    1. Am I excited to follow a proven business model and have support?<\/strong><\/p>\n\n\n\n

    2. Do I have the necessary financial resources to make the initial investment?<\/strong><\/p>\n\n\n\n

    3. Am I passionate about the franchise’s industry, its products or services?<\/strong><\/p>\n\n\n\n

    4. Can I commit the required time and energy it takes to make the franchise successful?<\/strong><\/p>\n\n\n\n

    Questions to Ask the Franchisor<\/strong><\/h2>\n\n\n\n
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    Next, you\u2019ll want to learn whether the franchise you\u2019re interested in is able to help you achieve your entrepreneurial needs and aspirations. It\u2019s important to frame the discussion around what current franchisees are doing and what support they are getting from the franchisor.<\/p>\n\n\n\n

    1. What is the initial franchise fee and what startup costs should I budget for?<\/strong><\/p>\n\n\n\n

    2. Can you provide detailed information on ongoing fees, including royalties and advertising costs?<\/strong><\/p>\n\n\n\n

    3. What kind of training and support do you offer to new franchisees? <\/strong><\/p>\n\n\n\n

    This is the most important question you should also ask current franchisees. One of the main reasons people choose to invest in franchises is for support. An independent business owner must face the world on their own, but franchise owners have the benefit of support from the franchisor. You should inquire regarding support for training, marketing and operations.<\/p>\n\n\n\n

    4. Are there exclusive territories for franchisees, and how are they determined?<\/strong><\/p>\n\n\n\n

    5. Can you provide earnings claims or any financial performance representations?<\/strong><\/p>\n\n\n\n

    6. How long has your franchise system been in operation, and how many franchised units are currently active?<\/strong><\/p>\n\n\n\n

    7. How often do you update your franchise model and how are franchisees involved in these changes? <\/strong><\/p>\n\n\n\n

    The world does not stand still. Neither should your franchisor. The best franchisors are highly communicative, and forward looking, and focused on implementing new and impactful services and programs for the benefit of their franchisees.<\/p>\n\n\n\n

    Examples of new programs could be new property technology, certification programs or innovative email campaigns.<\/p>\n\n\n\n

    8. What is the process for renewing the franchise agreement, and are there any fees associated with renewal?<\/strong><\/p>\n\n\n\n

    9. How do you handle conflicts or disputes with franchisees?<\/strong><\/p>\n\n\n\n

    10. What kind of marketing and advertising support do you provide?<\/strong><\/p>\n\n\n\n

    11. How has your franchise grown historically, and what are your future growth plans?<\/strong><\/p>\n\n\n\n

    12. What is the success rate of existing franchises?<\/strong><\/p>\n\n\n\n

    Questions to Ask the Franchisee<\/strong><\/h2>\n\n\n\n
    \"A<\/figure>\n\n\n\n

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    To get the most honest and transparent perspective of a franchise, you should talk to current franchise owners about their experiences. Unlike traditional company hierarchies, franchisees pay royalties to their corporate offices \u2013 giving them a stake in the game. In other words, franchisees are allowed to speak openly about the quality of service and support they are receiving from their franchisor.<\/p>\n\n\n\n

    1. How long have you been a franchisee? <\/strong><\/p>\n\n\n\n

    One of the first questions to ask current franchisees is just how long they\u2019ve been running their business. If someone has been running a licensed location for a long time, it\u2019s a good sign that the business model is durable.<\/p>\n\n\n\n

    About half of all new business ventures end in failure within five years<\/a>. This doesn\u2019t mean you should avoid a franchise if the owner you talk to hasn\u2019t been operating for that long. They may be well on their way. If you speak to multiple franchisees who have been operating for varying number of years, it\u2019s a good indication that success is on the horizon.<\/p>\n\n\n\n

    2. Is there initial and ongoing training?<\/strong><\/p>\n\n\n\n

    3. Is the franchisor forward looking and introduces new programs and services to help its franchisees grow and adapt to market changes?<\/strong><\/p>\n\n\n\n

    4. What level of support do you receive from the franchisor?<\/strong><\/p>\n\n\n\n

    5. What were your initial and current gross revenues, and how long did it take to become profitable?<\/strong><\/p>\n\n\n\n

    6. Did you encounter any hidden fees?<\/strong><\/p>\n\n\n\n

    7. Can you say with confidence that the franchisor invest in training and certifications?<\/strong><\/p>\n\n\n\n

    8. Does the franchisor have an in-house learning platform through which you can gain ongoing training?<\/strong><\/p>\n\n\n\n

    9. Can you give me examples of recent initiatives from the franchisor to help franchisees with training?<\/strong><\/p>\n\n\n\n

    10. Do you feel that your franchisor understands the importance of marketing on behalf of its franchisors?<\/strong><\/p>\n\n\n\n

    11. Does the franchisor understand how to do social \/ digital marketing?<\/strong><\/p>\n\n\n\n

    12. Are you satisfied with the digital \/ social media marketing by the franchisor?<\/strong><\/p>\n\n\n\n

    13. Does the franchisor support print marketing, and provide access to branded apparel and promo products?<\/strong><\/p>\n\n\n\n

    14. Do you get access to all operational systems to run your business?<\/strong><\/p>\n\n\n\n

    15. Do you get technical support from your franchisor?<\/strong><\/p>\n\n\n\n

    16. Is the franchisor responsive?<\/strong><\/p>\n\n\n\n