Franchise Resources
Questions to Ask Before Buying a Franchise
The questions you ask — and the answers you receive — determine the quality of your franchise decision. This guide covers what to ask franchisors, existing owners, former franchisees, your attorney, and yourself.
Buying a franchise is a major financial and personal commitment. The due diligence process exists to protect you — but only if you ask the right questions and listen carefully to the answers.
This guide is organized by audience: the franchisor, existing franchisees, former franchisees, your attorney, and yourself. Each section includes the question and an explanation of why it matters. Use this as a working document during your evaluation process.
Questions to Ask the Franchisor
These questions help you evaluate the franchisor's stability, support model, and transparency before you invest.
How long has the franchise system been in operation, and how many units are currently open?
Why it matters: Longevity and unit count signal system stability. A brand with fewer than 50 units or less than 5 years of history carries more risk.
What does your initial training program include, and how long does it last?
Why it matters: Strong franchisors provide 2–4 weeks of structured training at their headquarters plus field support during your launch period.
What ongoing support do you provide after opening?
Why it matters: Look for dedicated field support representatives, regular check-ins, and a clear escalation path when problems arise.
How do you handle territory disputes between franchisees?
Why it matters: Territory conflicts are one of the most common sources of franchisee dissatisfaction. Understand the policy before you sign.
What is your franchisee validation rate — how many franchisees would buy again?
Why it matters: A healthy system typically sees 80%+ of franchisees saying they would make the same decision again.
What are the most common reasons franchisees struggle or fail in your system?
Why it matters: An honest franchisor will give you a direct answer. Evasiveness here is a red flag.
What changes are planned for the franchise system in the next 3–5 years?
Why it matters: You are buying into a long-term relationship. Understand where the brand is headed before you commit.
Questions to Ask Existing Franchisees
Existing franchisees are your most valuable source of unfiltered information. Call at least 10–15 from the Item 20 contact list.
Does the franchisor deliver on the promises made during the sales process?
Why it matters: This is the single most important question. A gap between what was promised and what was delivered is the root cause of most franchisee dissatisfaction.
How long did it take you to reach break-even and then profitability?
Why it matters: Compare this to the Item 19 data and your own financial projections. Outliers in either direction are worth exploring.
What does a typical week look like for you as an owner?
Why it matters: Understand the real day-to-day demands before you commit. Some franchises require far more owner involvement than the sales process suggests.
What do you wish you had known before buying?
Why it matters: This open-ended question often surfaces the most candid and useful information.
How responsive is the franchisor when you have a problem?
Why it matters: Support quality often degrades after the initial launch period. Ask franchisees who have been open for 2+ years.
Would you buy this franchise again, knowing what you know now?
Why it matters: A simple yes or no with follow-up is one of the most revealing questions you can ask.
Are you hitting the financial performance numbers shown in Item 19?
Why it matters: Item 19 data is historical and may not reflect your market. Franchisee feedback grounds the numbers in reality.
Questions to Ask Former Franchisees
Former franchisees are listed in Item 20 of the FDD. Many will speak candidly — their perspective is invaluable.
Why did you leave the system?
Why it matters: Understand whether the departure was voluntary (sold the business, relocated) or involuntary (financial failure, franchisor conflict).
What was the biggest challenge you faced as a franchisee?
Why it matters: Patterns across multiple former franchisees reveal systemic issues, not just individual circumstances.
How did the franchisor handle your exit?
Why it matters: The exit process reveals a lot about the franchisor's character and how they treat franchisees when the relationship ends.
Would you recommend this franchise to someone else?
Why it matters: Even former franchisees who left for positive reasons can give you a balanced assessment of the system's strengths and weaknesses.
Questions to Ask Your Franchise Attorney
Your attorney represents your interests exclusively. These questions help you get the most from that relationship.
Are there any unusual or one-sided provisions in the franchise agreement?
Why it matters: Franchise agreements are written by the franchisor's attorneys. Your attorney's job is to identify provisions that are unusually unfavorable to you.
What are my rights if the franchisor fails to deliver on their obligations?
Why it matters: Understand your remedies before you sign, not after a problem arises.
What does the renewal process look like, and what can change at renewal?
Why it matters: Many franchise agreements allow the franchisor to update terms significantly at renewal. Know what you are agreeing to long-term.
What are the transfer and resale provisions if I want to sell the business?
Why it matters: Your exit strategy matters. Understand the franchisor's approval rights, transfer fees, and right of first refusal.
Are there any pending or recent lawsuits involving this franchisor?
Why it matters: Your attorney can research litigation beyond what is disclosed in Item 3 of the FDD.
Questions to Ask Yourself
Honest self-assessment is the foundation of a good franchise decision. These questions have no wrong answers — only honest ones.
Am I buying this franchise because I genuinely believe in the business model, or because I am excited about the idea of ownership?
Why it matters: Excitement fades. Belief in the model sustains you through the difficult early months.
Can I afford to lose my entire investment without it destroying my financial security?
Why it matters: All business investments carry risk. If the answer is no, reconsider the investment size or timing.
Do I have the discipline to follow a system, even when I disagree with it?
Why it matters: Franchising requires following the franchisor's system. Entrepreneurs who resist this often struggle in franchise environments.
Does my family fully support this decision?
Why it matters: Business ownership affects the entire household. Misalignment at home creates pressure that compounds business challenges.
Am I prepared for the reality that it may take 12–24 months to reach profitability?
Why it matters: Most franchises require a ramp-up period. Your financial plan needs to account for this reality.
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General Disclaimer: Information provided by Brian Braggs and on this website is for educational and informational purposes and is not legal, tax, accounting, investment, or financial advice. Franchise ownership involves business and financial risk, and individual results vary. No revenue, earnings, profitability, financing, or business-success outcome is promised or guaranteed. Prospective franchisees should review the applicable current Franchise Disclosure Document (FDD), conduct independent due diligence, speak with current and former franchisees where applicable, and consult qualified legal, accounting, tax, and financial professionals before making an investment decision.
No Franchise Offer: This website is for general informational purposes and is not an offer to sell, or a solicitation of an offer to buy, any particular franchise. Franchise offers are made only through the applicable franchisor’s current Franchise Disclosure Document and in compliance with applicable federal and state law. Franchise registration, exemption, filing, broker, and disclosure requirements vary by jurisdiction.
Independent Franchise Consultant & Compensation Disclosure: Brian Braggs is an independent franchise consultant and is not an employee or agent of any individual franchise brand unless expressly stated. Brian may receive referral or consulting compensation from franchisors or related parties when a candidate enters into a franchise relationship. Compensation arrangements may vary by franchisor. Franchise opportunities are evaluated based on factors including candidate goals, qualifications, financial considerations, market availability, business-model preferences, and due diligence. Prospective franchisees should independently evaluate each opportunity and review the applicable Franchise Disclosure Document before making an investment decision.
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