Questions to Ask a Franchisee
Critical questions to ask current franchisees before investing in a franchise to get honest insights about profitability, support, and the reality of franchise ownership.
1How long have you owned this franchise, and what was your background before purchasing it?
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How long have you owned this franchise, and what was your background before purchasing it?
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Why this works
Understanding their experience and timeline helps you assess learning curves and whether your background aligns with successful franchisees.
2Did you meet your financial projections in the first year, and if not, when did you break even?
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Did you meet your financial projections in the first year, and if not, when did you break even?
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Why this works
Real profitability timelines are crucial for planning finances and setting realistic expectations beyond franchisor marketing materials.
3What were the unexpected costs or expenses you didn't anticipate?
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What were the unexpected costs or expenses you didn't anticipate?
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Why this works
Hidden costs can significantly impact profitability, and current franchisees can identify expenses the franchisor might not emphasize.
4How would you rate the franchisor's ongoing support, and can you give specific examples?
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How would you rate the franchisor's ongoing support, and can you give specific examples?
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Why this works
Support quality varies widely between franchisors, and concrete examples reveal whether promises match reality after the sale.
5What has been your biggest challenge as a franchisee?
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What has been your biggest challenge as a franchisee?
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Why this works
Identifying common challenges helps you prepare for potential difficulties and assess whether you're equipped to handle them.
6If you could go back, would you buy this franchise again? Why or why not?
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If you could go back, would you buy this franchise again? Why or why not?
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Why this works
This direct question cuts through politeness and gets honest feedback about overall satisfaction and franchise value.
7How much time do you personally spend working in the business each week?
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How much time do you personally spend working in the business each week?
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Why this works
Time commitment often exceeds expectations, and understanding the reality helps you assess work-life balance and staffing needs.
8What's the relationship like between franchisees and the franchisor?
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What's the relationship like between franchisees and the franchisor?
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Why this works
Power dynamics and communication quality significantly impact your experience and ability to voice concerns or suggestions.
9Have you been able to implement your own ideas, or is everything dictated by corporate?
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Have you been able to implement your own ideas, or is everything dictated by corporate?
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Why this works
Understanding flexibility reveals whether you'll have entrepreneurial freedom or must follow rigid systems that may not work locally.
10What percentage of franchisees in your area are profitable?
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What percentage of franchisees in your area are profitable?
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Why this works
Success rates among nearby franchisees indicate market saturation and whether the model works in similar demographic areas.
11How often do royalty fees or other fees increase, and by how much?
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How often do royalty fees or other fees increase, and by how much?
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Why this works
Fee increases directly impact profitability, and historical patterns help you project long-term costs beyond initial agreements.
12What's the quality of the training program, and did it prepare you adequately?
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What's the quality of the training program, and did it prepare you adequately?
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Why this works
Training effectiveness determines how quickly you can operate successfully and whether you'll need expensive additional education.
13Have you had any disputes with the franchisor, and how were they resolved?
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Have you had any disputes with the franchisor, and how were they resolved?
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Why this works
Conflict resolution approaches reveal whether the franchisor treats franchisees fairly or uses legal power to suppress concerns.
14How strong is the franchise brand in your market, and does corporate support local marketing?
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How strong is the franchise brand in your market, and does corporate support local marketing?
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Why this works
Brand strength affects customer acquisition costs, and marketing support determines how much you'll spend building awareness.
15What's the renewal process like, and are there significant costs involved?
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What's the renewal process like, and are there significant costs involved?
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Why this works
Renewal terms and fees impact long-term planning and can significantly affect the eventual return on your investment.
16How difficult is it to hire and retain quality staff?
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How difficult is it to hire and retain quality staff?
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Why this works
Labor challenges are often underestimated and can make or break a franchise's profitability and your quality of life.
17What do you wish the franchisor had told you before you signed?
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What do you wish the franchisor had told you before you signed?
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Why this works
This question uncovers information gaps or misrepresentations that franchisees discover only after committing to the franchise.
18How has the franchisor adapted to market changes or economic downturns?
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How has the franchisor adapted to market changes or economic downturns?
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Why this works
Adaptability and support during challenging times reveal whether the franchisor partners with franchisees or protects corporate interests first.
19What's your exit strategy, and how easy is it to sell a franchise in this system?
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What's your exit strategy, and how easy is it to sell a franchise in this system?
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Why this works
Resale restrictions and market demand for resales affect your ability to exit the investment when you're ready.
20Knowing what you know now, what advice would you give someone considering this franchise?
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Knowing what you know now, what advice would you give someone considering this franchise?
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Why this works
Open-ended advice often reveals crucial insights that specific questions might miss and shows the franchisee's overall perspective.
Evaluating Franchise Opportunities
Expert tips and techniques for getting the most out of these questions.
Best Practices
Talk to Multiple Franchisees
Speak with at least 5-10 franchisees in different markets and at different success levels to get a balanced perspective on the opportunity.
Request Contact Information Independently
Ask the franchisor for a complete list of franchisees, then choose who to contact rather than only speaking with provided references.
Visit Locations in Person
See franchisees operating their businesses firsthand to observe customer traffic, operations, and the actual work involved.
Ask About Failed Franchisees
Request information about franchisees who closed or sold, and try to contact them for the most honest feedback about challenges.
Key Topics to Explore
Financial Reality Check
Operational Insights
Common Pitfalls
Don't Only Talk to Successful Franchisees
Franchisors often direct you to their stars - seek out average or struggling franchisees for a realistic view of challenges.
Avoid Leading Questions
Ask open-ended questions that allow franchisees to share honestly rather than questions that suggest the answer you want to hear.
Don't Ignore Red Flags
If multiple franchisees mention the same problems or hesitate to recommend the franchise, take those warnings seriously.