Franchise questions for the franchisor

Below are some questions you can ask the franchisor to help you assess the franchise opportunity

Please bear in mind that there are many types of franchises and you may have to tailor these questions to suit the specific franchise you are enquiring about.

• Will you supply me with a breakdown of all costs necessary to open the business?
• Are there any other costs I can expect to be asked for?
• Do I have to pay a deposit or upfront payment, and if I do not proceed will I lose my deposit or any part of it?
• How much working capital do you think I need, and what help can you give me in estimating my projections?
• How long will it take to start trading from the time I sign the contract?
• What will training consist of and how long will it last and are all training costs included in my franchise fee?
• What is my expected break even and how long should it take me to reach this figure?
• Do you charge ongoing franchise fees and if so what are they and how are they calculated?
• Do I have to contribute to any other costs such as advertising and promotional expenditure that you incur, if so how much?
• What help, if any, will I receive if I want to do some advertising and promotion on my own?
• After I have opened, what ongoing support will I be provided with?
• What help and guidance do you offer in site selection?
• Can I be provided with a full list of all franchisees in the network and can I contact them?
• Do you provide instructional and operational manuals and can I see them prior to signing?
• Have any franchisees failed, and if so why?
• How thoroughly do you vet prospective franchisees to maintain a high standard in the network?
• Will the territory offered be for my sole and exclusive use?
• Are you currently operating in areas with similar demographics as my proposed territory?
• How do you handle grievances with existing franchisees?
• Does your company see any threats in the current marketplace?