Buying a franchise can be a fantastic way to dive into entrepreneurship with a safety net.

You get to leverage an established brand, operational systems, and ongoing support from the franchisor.

However, it’s crucial to do your homework before making the investment. Below are ten essential questions to ask before buying a franchise.

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1. What is the total initial investment?

Understanding the full financial commitment is critical.

This includes the franchise fee, equipment costs, initial inventory, working capital, and any other expenses you’ll incur before opening your doors.

Make sure you have a clear picture of the financial landscape to avoid any unwelcome surprises.

2. What are the ongoing fees?

Beyond the initial investment, franchises often come with ongoing franchise fees such as:

  • Royalties
  • Marketing contributions
  • Technology fees

These can significantly impact your bottom line, so ensure you understand the structure and amount of these fees.

3. How strong is the brand?

The strength of the brand can greatly influence your success.

To get an overall picture of the franchisor, you should research its:

  • Market presence
  • Reputation
  • Brand recognition

Speak with existing franchisees to gauge customer loyalty and brand support at the local level.

4. What kind of training and support is provided?

One of the advantages of buying a franchise is the support you receive.

Inquire about the training programs available for you and your staff, and the type of ongoing support provided.

This can include help with:

  • Site selection
  • Marketing
  • Operational support
  • And more

Strong support from the franchisor can be a game-changer, especially in the early stages.

5. What is the franchisor’s financial health?

You want to partner with a franchisor that is financially stable.

Request the franchisor’s financial statements and have them reviewed by a professional.

A healthy franchisor is more likely to provide ongoing support and invest in the growth of the brand.

6. What is the franchise’s track record?

Investigate the franchisor’s history and performance.

  • How long have they been in business?
  • How many franchises have they opened, and how many have closed?

High turnover rates can be a red flag.

Additionally, look into any legal issues or disputes involving the franchisor.

7. What is the competitive landscape?

Understanding your market is crucial.

Research the competition in your area and evaluate how your franchise will fit into the local market.

Ask the franchisor about market saturation and their strategy for dealing with competition.

8. What are the terms of the franchise agreement?

The franchise agreement is a binding contract that outlines your relationship with the franchisor.

Have it reviewed by a lawyer who specializes in franchise law to ensure you understand your rights and obligations.

Pay attention to the term length, renewal conditions, and any restrictions on selling your franchise.

9. What is the earning potential?

While no franchisor can guarantee profits, they should provide you with enough information to make an informed decision.

Request a copy of the Franchise Disclosure Document (FDD), which includes financial performance representations.

Talk to existing franchisees about their experiences and financial performance.

10. What is the culture of the franchise system?

The culture of the franchise system can significantly impact your experience as a franchisee.

Attend discovery days or meet with the franchisor’s team to get a sense of their values, communication style, and overall culture.

A good cultural fit can lead to a more satisfying and productive partnership.

Buying a franchise is a major decision that requires thorough due diligence.

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Buying a Franchise – Next Steps

By asking these ten questions, you can gain a deeper understanding of what you’re getting into and make an informed decision.

Remember, the goal is to find a franchise that aligns with your financial goals, personal interests, and long-term aspirations.

If you’re finding it difficult to find the right franchise, consider speaking with a Franchise Consultant. They have the in-depth knowledge and experience that can help you identify franchise opportunities and then whittle those opportunities down to the right fit for you.

Franchise Matchmakers is a team of franchising professionals dedicated to helping people explore business ownership as a career path. 

Contact us at to find out more about franchising options that may suit you.

Happy franchising!