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Franchise FAQ

Interview Questions to Ask the Franchisor

1.What is the franchisor support & involvement for the first year? After the first year?

2.Who is your competition and where does this company fit in and compare to the competition?

3.What franchisees have succeeded at a faster rate than average and why? (what is average)

4.What franchisees have failed in your system and why?

5.What is a realistic time frame of working capital I need?

6.What territory or how many locations do I need to insure I get my “need” income of $xxx and my “want” income of $xxx? (they may not answer this question due to earnings claims, but still good to ask!)

7.What are the day to day responsibilities of the franchisee? What does a typical day look like?

8.If I want to continue, will you provide me a list of names of franchisees in your system with similar demographics to my area, similar background to mine, and a variety of time in the business? (you can call ALL franchisees, but get the initial list from them so you talk to those with similar goals to yours)

9.Are their internal funding options for this business? If not, have any of your franchisees received funding from the SBA or other business loan sources?

10. Is the franchise transferable? Have you had franchisees sell their business?

Interview Questions to Ask the Franchisee

1.How long have you been in business?

2.Any surprises that you had before, during, or after you opened?

3.What is the best thing about this business?

4.What is your least favorite thing?

5.What were your gross sales/revenue for year 1, year 2, and now? (they may not want to answer this initially, but once they know you are serious, they usually do)

6.How is corporate support?

7.What is a realistic Net Profit in this business? 

8.Would you do it again?

9.How many hours do you as an owner work per week?

10.Do you feel you have to be in the business everyday?

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