Questions to Ask Existing Franchisees
When Buying a Franchise
- Has owning a franchise been good for you?
- Were you trained properly for running the business?
- What does the franchisor do well for you?
- What do you think of the franchisor's marketing and advertising programs?
- What is the biggest advantage of your business?
- What is the greatest weakness of the business?
- Why might one fail in this business?
- How long did it take before you started making a profit? Are you making
the money you expected? How much money do you make with the franchise?
- What did it cost you to build and start the franchise?
- Did you finance the cost of the business? How easy was that?
- How many hours a week do you work on the franchise?
- What is the reputation of the franchisor in the industry?
- Is the business different from what you originally expected?
- Does the management have the expertise and experience to teach you how to
operate the business?
- Are you satisfied with what the franchisor is doing?
- If you had to do it all over again, would you select the same business and
the same franchisor?
- Are there restrictions regarding suppliers from whom you can buy goods and
services? Has that been a problem? Are costs okay?
- How thorough a job did the franchisor do with the site selection and lease
negotiation process? And with the whole pre-opening process?
- How did you obtain sales and profit information to help you with your
- Does the franchisor seem financially healthy?
- Is there any turmoil in the franchise system?
- Are there any new products or developments coming out?