Questions to Ask Franchisees
(during your investigation)

Financial

What were your initial startup costs, and were they as expected?
How long did it take for your business to become profitable?
Are there any hidden costs not disclosed in the franchise agreement?
How do you handle financing for ongoing operations and expansion?
What is the average monthly revenue and profit margin for your franchise?
Have you ever had difficulty making royalty payments or other fees to the franchisor?
How do the franchise fees compare to the support and benefits you receive from the franchisor?
Are there any unexpected recurring costs that new franchisees should be aware of?
Have you had to invest additional capital after starting the franchise?
How do you manage your personal and business finances separately?

Support and Training

How effective was the initial training provided by the franchisor?
Does the franchisor offer ongoing training and development?
How responsive is the franchisor to your questions and needs? What kind of support do you receive for marketing and advertising? Are there opportunities for regional or national franchisee meetings and networking?
How does the franchisor assist with technology and software needs?
Have you encountered any challenges with the operational support from the franchisor?
How often does the franchisor update their training materials or manuals?
Are there additional training resources or support groups available? How does the franchisor handle conflicts or disputes with franchisees?

Operations

What are the daily operational challenges you face in running the franchise?
How much autonomy do you have in managing day-to-day operations?
Are there any operational processes or requirements that you find particularly restrictive?
How is inventory management handled, and is it efficient?
What systems or processes are in place for quality control?
How does the franchisor assist with supply chain issues?
Have you faced any issues with the franchisor’s proprietary systems or equipment?
How are customer complaints and service issues managed?
Are there opportunities to innovate or adapt within the franchise system?
How is the franchise’s operational performance measured and evaluated?

Marketing and Sales

How effective are the franchisor’s national marketing campaigns?
What local marketing initiatives have been most successful for you?
Does the franchisor provide adequate marketing materials and support?
How are customer leads and referrals handled within the franchise system?
Are there any marketing fees, and do you feel they are justified? How does the franchisor support franchisees in developing a local customer base?
What digital marketing strategies have worked best for your franchise?
Have you experienced any challenges with brand consistency in marketing efforts?
How does the franchisor track and measure the success of marketing campaigns?
Are there restrictions on how you can market your franchise locally?

Relationship with Franchisor

How would you describe your overall relationship with the franchisor?
How transparent is the franchisor about changes and updates to the franchise system?
Has the franchisor delivered on their promises and commitments? How does the franchisor handle franchisee feedback and suggestions?
Are there regular communications or updates from the franchisor? Have you ever had any disputes with the franchisor, and how were they resolved?
How does the franchisor handle franchise renewals and territory expansions?
Is the franchisor supportive in times of business difficulties or downturns?
What is the franchisor’s reputation within the industry and among franchisees?
How does the franchisor support franchisees in adapting to market changes?

Business Growth and Sustainability

What are the growth opportunities within the franchise system? Have you considered opening additional franchise units, and why or why not?
How sustainable is the business model over the long term?
Are there franchised locations that have closed, and what were the reasons?
How does the franchisor support franchisees in expanding their business?
What are the biggest challenges to scaling the business?
How do you stay competitive in your local market?
Are there opportunities for new product or service offerings within the franchise?
How does the franchisor assist with market research and expansion planning?
What future trends do you see impacting the franchise?

Personal and Lifestyle

How has owning a franchise impacted your work-life balance? What are the most rewarding aspects of being a franchisee?
What challenges have you faced in managing employees and staffing?
How does the time commitment of running the franchise compare to your expectations?
How has the franchise ownership affected your personal finances? Are you satisfied with the level of personal and professional fulfillment you get from the franchise?
What advice would you give to someone considering this franchise? How do you manage stress and maintain motivation in running the business?
What skills do you think are essential for success in this franchise? Are there any support networks or communities that have been helpful to you?

Due Diligence and Decision Making

What were the most important factors in your decision to choose this franchise?
How thorough was your due diligence before purchasing the franchise?
What resources did you use to evaluate the franchise opportunity? How long did it take you to make the decision to buy the franchise? Looking back, is there anything you would have done differently during the evaluation process?