Questions to ask before buying a franchise

Questions about eligibility and the actual offer

Ask the franchisor whether it currently accepts your applicant profile, proposed country and desired format. Does it recruit individual owner-operators, experienced multi-unit businesses or selected corporate partners? Is there a real location available, a waiting list or only a general expression-of-interest form?

• Which entity would sign the agreement with me?
• What financial and operating qualifications apply to this market?
• Can I apply with a partner or outside investor?
• What training, relocation or full-time commitments are required?
• Which documents describe the offer currently under consideration?

Questions about costs and assumptions

Request a written explanation of the investment range and identify the assumptions behind it. Ask whether the range covers a new build, an acquisition or several formats. Find out which amounts are refundable, when payments become due and which estimates depend on local quotations.

• What is included in the opening budget, and what is excluded?
• How much working capital is assumed and for what operating period?
• Which continuing charges are based on sales?
• What compulsory refurbishment or equipment replacement might be required?
• Which costs continue if opening is delayed or sales are disappointing?

Questions about the location and operating rules

Understand who finds and approves the premises, who holds the lease and what happens if planning, construction or landlord approval takes longer than expected. Ask how the proposed territory works, including online sales, delivery and other outlets serving the same customers.

• Who is responsible for property, construction and maintenance?
• Which suppliers, menu items or services are mandatory?
• What staffing and management involvement does the brand expect?
• What support is provided before and after opening?
• How are disputes, transfers, renewal and early exit handled?

Questions that help you verify the answers

Write down each answer, its source and any supporting document. A useful reply explains the relevant country and format rather than relying on the brand’s global reputation. If a number comes from historical data, ask for the period, sample and calculation method. Do not treat a sales figure as a profit estimate.

Request suitable operator references and ask about their actual opening process, support experience and unexpected costs. For US offers, review the FTC’s guidance alongside the current disclosure documents. For every country, use advisers familiar with the proposed transaction and local rules. Resolve material unknowns before paying a deposit or signing an agreement; keep a dated copy of your research so later changes are visible.