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Top Ten Questions to Ask Other Franchisees Before Buying a Franchise

Unlocking Insights: Essential Questions for Prospective Franchisees from Experienced Franchise Owners

As an aspiring franchisee exploring a new business venture, one of the most valuable steps you can take is to ask questions of existing franchisees in the system you are considering. Current franchise owners can provide insider perspectives on the franchisor, the viability of the business model, and the realities of day-to-day operations. In your due diligence, be sure to seek out the unvarnished truth by asking probing questions that go beyond surface impressions. The insights you gain could make or break your decision to move forward. With so much on the line financially and personally, you owe it to yourself to do your homework before signing any agreements. This article provides ten of the most essential questions to ask other franchisees that will help you kick the tires on the franchise opportunity and decide if it's the right fit for you.

What Are the Top 10 Questions to Ask Existing Franchisees?

  1. How long have you owned this franchise?

  2. What motivated you to purchase this franchise?

  3. What has been your biggest challenge as a franchise owner?

  4. How much support have you received from the franchisor?

  5. Have you been able to make a profit with this franchise?

  6. What advice would you give to someone considering purchasing this franchise?

  7. What is the franchisor's reputation like in the industry?

  8. Has the franchisor made any changes to the business model since you purchased your franchise?

  9. Are you satisfied with the level of communication and support from the franchisor?

  10. What is the franchisor's policy regarding renewing franchise agreements?

The insights you gain from current franchisees' responses to these questions can help you make an informed decision on whether to move forward with purchasing the franchise. If their answers reveal major issues or red flags, that should give you pause. But positive feedback on most of these points can boost your confidence in the franchise opportunity.

Ultimately, talking to existing franchisees is one of the most effective ways to get an honest view "from the trenches" into what it's really like to operate the franchise day to day. So take full advantage of the perspectives of these insider sources as part of your thorough investigation before signing any franchise agreements.

The questions above represent a good starting point. But consider following up with more specific questions tailored to your circumstances and needs. The more information you can gather about the reality (good and bad) of operating the franchise, the better equipped you'll be to determine if it's a good fit for your goals, skills and resources.

So reach out to multiple franchisees, ask them probing questions and listen closely to their responses. You'll gain invaluable insight that can help make your franchise buying decision an informed one.

What Other Questions to Ask Franchise Business Owners?

Navigating Franchise Ownership: Essential Queries for Empowering Your Journey

How Satisfied Are You With the Franchisor's Support?

Asking current franchisees about the level of support they receive from the franchisor provides valuable insight. Look for franchisors that offer adequate initial training as well as ongoing support for marketing, operations, and other key areas. Existing owners can speak to how responsive the franchisor is in addressing issues and concerns. Their feedback helps determine if the franchisor provides the guidance needed for your success.

How Well Does the Business Model Work?

Speaking with current franchisees allows you to assess how effective the business model is in practice. Ask about their experience with profitability, work-life balance, and other factors that determine if the opportunity meets your goals. Get details on the time required to break even and potential earnings to gain realistic expectations. Also, inquire about any challenges in implementing the model and how the franchisor helps franchisees overcome them.

What Do You Wish You Had Known Before Becoming a Franchisee?

Existing owners can offer valuable advice based on lessons they learned through experience. Ask what they wish they had known before signing on as a franchisee. Their insight helps you avoid surprises and make better decisions. Be sure to ask follow up questions about any concerns they raise.

How Strong is the Brand in the Local Market?

An established brand with a loyal customer base leads to higher success rates for franchisees. Ask current owners about brand recognition and market penetration in their area. See if people readily associate the brand with high quality, value or other attributes that drive business. Local brand strength indicates the franchisor actively supports marketing at the franchisee level.

Would You Recommend This Opportunity to Others?

Ultimately, the best indicator of a quality opportunity is whether existing franchisees would recommend it to prospective owners like yourself. Ask them directly if they would suggest investing in the franchise based on their experience. Look for a resounding ‘yes’ and reasons why they endorse the franchisor. Their advocacy signifies high satisfaction, a collaborative franchisor-franchisee relationship and a concept poised for growth.

Questions to Ask Other Franchise Owners About Profitability

Unlocking Success: Essential Inquiries for Assessing Franchise Profitability from Fellow Owners

As an aspiring franchisee, one of the most important aspects you must consider is the profit potential of the franchise opportunity. Speaking with current franchise owners is one of the best ways to gain insight into the financial performance and profit margins you can expect.

Below are some additional important questions to ask franchise owners:

  • What were your total initial investment and ongoing costs to get the business up and running? Understanding the full financial requirements will help you determine if the opportunity is the right fit based on your budget and access to capital.

  • How long did it take you to become profitable? The time required to achieve profitability can vary significantly based on factors like the industry, business model, and location. Make sure you go in with realistic expectations about how long it may take to become profitable.

  • What is your average annual revenue and profit margin? Asking directly about revenue and profit margins will provide clarity into the real financial potential and allow you to assess if the opportunity can achieve your income goals. However, recognize that performance can vary for different locations and markets.

  • Did the franchisor provide an accurate financial performance representation? Understanding if the franchisor was transparent in their financial disclosures will help determine if you can trust the information they have provided and their level of support for franchisees.

  • What are the biggest challenges you've faced and how did you overcome them? Learning about difficulties other owners encountered, and how they were resolved, provides valuable insight to help you avoid or mitigate potential issues that could impact your profitability and success.

Speaking with current franchise owners is one of the most valuable parts of your due diligence. By asking targeted questions about profitability and finances, you can make a fully informed decision about whether the opportunity is positioned to meet your income and investment goals. The answers you receive will be instrumental in determining if the franchise is the right path for you to achieve your definition of success and financial freedom.

Franchise Agreement Questions to Discuss With Current Franchisees

When reviewing a franchise agreement, it is prudent to speak with current franchisees to gain valuable insights into the terms and conditions. Some key questions to ask include:

What are the royalties and fees?

Discuss the ongoing royalties, advertising fees, and any other recurring charges the franchisor requires. Understand how these fees are calculated and how often they increase. High fees can significantly impact your profits over time.

How long is the initial franchise term?

The initial term outlines how long you agree to operate under the franchise agreement. Typically 10 to 20 years, this term will determine when you can renegotiate terms or exit the franchise. Ask if franchisees have had success renewing for additional terms.

What control does the franchisor have?

Determine how much input the franchisor has over day-to-day operations and key business decisions. While some control is necessary to protect brand standards, too much control can limit your ability to adapt to local market conditions. Ask franchisees if the level of control felt restrictive or supportive.

What are the termination and renewal provisions?

Understand under what conditions you or the franchisor can terminate the agreement before the initial term concludes. Discuss the process and costs to renew for additional terms. Make sure you feel the agreement provides sufficient protections for the sizeable investment you will be making in the franchise.

Speaking with experienced franchisees provides valuable insights into the realities of the franchise relationship and agreement. Come prepared with a list of questions about operations, profits, franchisor support, and any concerns with the current agreement. The answers you receive can clarify if the opportunity meets your needs and expectations prior to signing an agreement.

Get the Inside Scoop on Franchisor Support From Existing Owners

When evaluating a franchise opportunity, speaking with current franchisees is one of the most valuable forms of due diligence you can conduct. As an aspiring franchisee, you should inquire about the level and quality of support provided by the franchisor. Current owners can offer insights into their experiences with the franchisor and share details about the training, resources, and ongoing support provided to help franchisees succeed.

Some questions you may want to ask existing franchisees include:

  • What type of initial training did the franchisor provide? Was it comprehensive and helpful in preparing you to operate the business?

  • Does the franchisor provide operations manuals, software tools, and other resources to help streamline business processes? If so, how useful have you found these resources?

  • How responsive is the franchisor to questions or concerns you have about your franchise location? Do they provide timely guidance and solutions to help resolve any issues that arise?

  • Does the franchisor organize any conferences, networking events, or continuing education opportunities for franchisees? If so, how valuable have you found these in building connections with other owners and further developing your business acumen?

  • Overall, how satisfied are you with the level of support provided by the franchisor? Would you say they fulfill their obligations to help franchisees succeed as outlined in the franchise agreement?

The answers to these questions can reveal a lot about what you may experience as a franchisee and the franchisor’s commitment to your success. Be wary of any franchisors that fail to provide adequate support to current owners or do not seem to maintain strong, collaborative relationships with their franchisees. With the right franchisor behind you, you will have access to resources and guidance that can help ensure a smoother start and greater likelihood of long-term success. Conducting thorough due diligence, including speaking with current franchisees, is well worth the effort.

Franchise Lawyer: Top Legal Questions to Ask Fellow Franchisees

Empowering Your Franchise Journey: Essential Legal Queries to Ask Fellow Franchisees

As an aspiring franchisee conducting due diligence on a franchise opportunity, discussing the legal aspects with other franchisees currently in the system can provide valuable insight. Here are some recommended questions to ask:

What restrictions does the franchise agreement impose?

Franchise agreements typically include restrictions around operational procedures, use of intellectual property, non-compete clauses, and termination or transfer of the franchise. Asking other franchisees about their experience with these restrictions can help determine if they align with your business goals and risk tolerance.

How responsive is the franchisor to system-wide issues?

While the franchisor aims to protect brand consistency, they also need to support franchisees in addressing challenges like changes in consumer preferences or economic conditions. Discussing the franchisor’s track record of responding to system-wide issues and willingness to consider franchisee input can indicate how well they balance control and support.

What is the overall relationship like with the franchisor?

The franchisor-franchisee relationship is essential to the success of any franchise system. Speaking to current franchisees about their satisfaction with communication, availability of support resources, and willingness of the franchisor to consider input and address concerns can help determine if the relationship dynamic will meet your needs.

Have there been any recent or ongoing legal disputes?

While some level of dispute is inevitable in any business relationship, frequent or unresolved legal disputes within a franchise system can be a red flag. Asking franchisees about any recent or ongoing litigation and how the franchisor responded can identify potentially serious issues that could negatively impact your experience as a new franchisee.

Discussing these types of legal questions with current franchisees, in addition to reviewing the franchise disclosure document and franchise agreement, will provide a well-rounded view of the opportunity and help determine if the franchisor’s practices align with your business values and risk tolerance as an entrepreneur. With the right knowledge, you can pursue franchise ownership with confidence.


As you carefully consider joining a franchise system, connecting with current and former franchisees will provide invaluable insights. Take the opportunity to ask candid questions about their experiences, both positive and negative. Be sure to inquire about the franchisor's responsiveness and the level of training and ongoing support provided. Weigh all of the feedback as you determine if the opportunity is a good fit. An investment in a franchise can be extremely rewarding when you select the right brand and feel fully prepared to operate a successful location. Do your due diligence with eyes wide open to make the franchise decision that is right for you.

Lopes Law is a trusted franchise law firm for individuals venturing into franchise ownership. With our deep understanding of franchise law and our commitment to client success, we have established ourselves as a leading industry authority. Our brand is built on expertise, reliability, and personalized service. We strive to demystify the legal aspects of franchise ownership and provide pragmatic solutions that support our client's aspirations for business growth and prosperity. By choosing Lopes Law, aspiring franchisees gain access to seasoned legal professionals dedicated to protecting their interests and helping them achieve their franchising goals. Contact us so that we can help you prepare for franchise success.

If you need professional legal assistance, please contact us. We're here to help.


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