TRUTH-REVEALING QUESTIONS

• How long has the franchise been operating?

• How much information is openly disclosed?

• Are all the franchise fees, and the services you will receive, clearly articulated?

• Is the franchisor happy to share the performance of a variety of existing businesses –

established, new, large, small, country, metro?

• Exactly what weekly/monthly support will you get from the franchisor?

• What feedback mechanisms are in place within the franchise system?

• Has there been a history of disputes?

• What financials will you be asked for?

Tip: if it’s just the standard P&L, balance sheet and cash flow information, this may be a sign that commercial, modelling and decision-making numbers and ratios are not a priority. I believe this is cause to ask more questions!