Important Questions to Ask Present or Former Franchisees

Call and visit several branches of the franchise. It is important to see how they operate. Be considerate of the franchisees you talk with. They do not have to talk with you and it would be unfair to expect them to spend time with you during their busiest hours.

Explain who you are and ask when would be a good time for them to talk with you. Have questions ready when you speak with them.

 

  • Why did you select this particular franchise system over others in the same type of business?

     

  • What was your employment background prior to becoming a franchisee?

     

  • Did you get the training, quality products and support you paid for and were promised? Did the promised training take place when you needed it and did the training prepare you to compete with other businesses providing similar products or services?

     

  • What problems did you encounter with the franchisor, the site, establishing your business and how did the franchisor respond to problems?

     

  • How would you describe your overall franchisor/franchisee relationship?

     

  • Is there a franchisee association or advisory council? Was there some incident or problem that caused the franchisees to band together? How long has the association existed? Who controls the association, the franchisees or the franchisor? What current issues are being dealt with? Is there a meeting scheduled that I could attend?

     

  • What is your opinion about how competitive your franchise is with similar businesses? What, if any, trends do you see in the industry, in the franchisor’s business, and in your particular market area?

     

  • Are there any other franchisees or former franchisees whom you might recommend I contact?

     

  • How often have you found it necessary to refer to your franchise agreement after your business opened? Did the agreement provide the answer to your questions? What do you wish the agreement had included? If many franchisees are turning frequently to their agreements to solve problems with the franchisor, the franchisor/franchisee relationship may not be a healthy one.

     

  • Consider asking a cooperative franchisee if you could work with her/him for a period of time for free before you commit to buying your own franchise.

     

  • If the person is a former franchisee:

     

    • Why did you leave the franchise system?

       

    • Did the franchisor cooperate in helping you sell your franchise?

       

    • Do you own any other franchise or would you buy a franchise from a different franchisor?

       

    • If there was a termination or nonrenewal, did the franchisor explain why and provide a reasonable opportunity for you to cure the problem?

Source: New York State Office Of Attorney General

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