Questions to Ask Other Franchisees

The following list of questions is not exhaustive but can be used as a template to assist you in understanding what you should be asking existing franchisees.

1. How long have you been in business?  This is very important, because someone who has been in business for less than a year probably cannot give you reliable information.  Look for franchisees who have been in business at least two or three years.

2. Is your business making a profit, after paying yourself a reasonable salary or wage? Have you ever had to not pay yourself a salary or wage?

3. Is the franchise what the franchisor said it would be?

4. How frequently do you hear from the franchisor’s representatives?  Do they assist you in operating your business?  In good systems, franchisor representatives visit two to four times a year.

5. Are the computer systems, point of sale systems and other mechanical systems functional and helpful?

6. If you want to make a complaint, how do you do it, and how does the franchisor respond?

7. What would you change?

8. Do you know of other franchisees?  Do they talk to each other?  If so, who else do you think might be helpful to me in evaluating this purchase?

9. What is the most negative thing you can say about the franchisor? 

10. If you had it to do over would you do it over again?