PROS & CONS | GLOSSARY | THINGS TO CONSIDER
QUESTIONS TO ASK THE FRANCHISOR | COMMONLY ASKED QUESTIONS

Purchasing a franchise is a big decision and you will have a lot of questions. Many of your questions should be focused on the franchisor. After all, you're considering investing in their business. Remember not to be afraid to ask, you want to have all the details before taking the next step.
First, you should set up an interview with the potential franchisor. Your focus should be to get a good understanding of the franchise while evaluating its strengths.

  • Determine what assistance the franchisor provides. Do they assist with training, store design, location construction, site selection, and feasibility studies?

  • Conduct your own demographic study to get an understanding of the audience within the market area.

  • What type of support will the franchisor provide once your franchise has opened its doors?

  • After the initial investment, will there be additional financial obligations requiring working capital?

  • Does the franchisor offer any form of financing?

  • Find out how many franchises have been sold to investors in the state you will be operating in during the last 12 months, and how many have opened a franchised business in that time.

  • What type of territorial restrictions and protections have been set up by the franchisor?

  • Is the franchisor planning on expanding within your state? Are they focusing on any specific locations?

  • What arrangements are established through the franchisor in terms of product supply?

  • Ask to see a current price sheet.

  • Ask to review the books of a current operating franchise.

  • Ask if the franchisor has been forced to terminate any of its franchisees and detail the reasons for this decision. Have any franchisees failed or gone bankrupt?

  • Are there any current lawsuits pending or past judgments against the franchisor?

  • What steps are taken to settle disputes between the franchisor and franchisees.