Once you have narrowed your list of franchises, you'll want to be prepared to speak with a representative of the Franchise company or concept you are considering. Use these questions as a guide for questions you may want to ask. You can print this page, or copy and paste the questions you want to use into a new document.
Franchise Company Interviewed:____________________________________________________________________
Name & Title of Franchisor Contact:______________________________________________________________________
I am passionate about [insert the type of franchise you are interested in]. What makes your franchise unique in this franchise sector?
Who are your competitors? What makes your franchise more attractive to the end customer?
How long have you been in business? In franchising? How does franchising fit in your overall business growth strategy?
How many franchise units do you have? How many franchisees did you add in the past 12 months? How many franchises did you close in the past 12 months? How many franchises changed owners? What leads to closures?
I want to [insert whether you want to be hands on or passive participation in the franchise], how would that fit with your vision for a new franchisee?
Please describe what a day in the life of one of your franchisee looks like. Is the day different for successful franchisees?
What characteristics do your successful franchisees share? What past management or business ownership have your successful franchisees had before becoming a franchisee?
I have [insert investment capital amount] to invest. What are the average start-up costs? Will I have to put in additional funds in year 1? In year 2?
How do your franchisees typically finance these costs?
What is the royalty? What are the marketing fees?
How do you--the franchisor-- build the brand recognition nationally? In your local market?
How does the franchisor provide operations training? On-going support?
Please describe your franchise culture? How does franchisor facilitate the relationships? How does franchisor encourage independence?
How are conflicts solved? What franchisee litigation have you had?
What customer litigation has happened? How was it resolved?
What technology is used to help the franchisees succeed? What technical skills do I need to be considered as a candidate for the franchise?
Do you have an Item 19 Earnings Claim? If yes, what is it? How many franchisees were sampled for this claim? Does this Earnings Claim represent revenue or net profit?Can this replace my current income in year one? In year two?
On average, how long do your franchisees keep their franchise before selling? What is that resale process?
What are the steps in your franchise approval process?
Please send me a copy of the Franchise Disclosure Document (FDD).
