Knowing the right questions to ask before buying a franchise is what separates a smart purchase from an expensive lesson. Every franchisor will tell you their system is proven, their support is incredible, and their owners are thriving. Some of them will even be right.
The way you tell the difference is by asking better questions than the average buyer. Below are 25 questions to ask before buying a franchise: 20 for the franchisor and 5 for current owners, grouped by topic, plus the steps to buying a franchise in the right order. Print it, bring it to every discovery call, and pay close attention to which questions get vague answers. If you are focused on cleaning, start with our roundup of the best cleaning franchises.
Money Questions to Ask Before Buying a Franchise
Of all the questions to ask before buying a franchise, start with money, because every other answer depends on whether the numbers work for you.
- What is the total initial investment, not just the franchise fee? (The full range lives in Item 7 of the FDD.)
- What are the ongoing fees: royalties, marketing fund, technology, and anything else charged monthly or annually?
- How much working capital do new owners typically need before the business covers its own costs?
- Do you provide financial performance information in Item 19, and if not, why not?
- Do you offer financing, discounts, or incentives for veterans or first-time owners?
Questions About Training and Support
- How long is initial training, where does it happen, and what exactly does it cover?
- What does support look like after the first 90 days, and who specifically do I call when something goes wrong?
- What marketing do you run on my behalf, and what am I responsible for myself?
- What technology is included, and what does it cost after launch?
Territory and Contract Questions to Ask Before Buying a Franchise
- Is my territory protected, how is it defined, and can it shrink or be resold?
- How long is the agreement term, and what does renewal cost?
- Under what conditions can you terminate my agreement?
- Can I sell or transfer my franchise later, and what approval or fees does that require?
Questions About the Day-to-Day Business
- How many hours do owners typically work in month three, and in year two?
- What does a typical owner’s week actually look like?
- What is the hardest part of this business that new owners underestimate?
- Does the model require a full-time manager, and is that salary included in the investment estimate?
Questions About the Franchisor Itself
- How many franchisees have left the system in the last three years, and why? (Check Item 20.)
- Is there any litigation involving the franchisor or its franchisees? (Check Item 3.)
- How many locations do you plan to open next year, and how will support keep up?
5 Questions to Ask Current Franchisees
This is where the truth lives. Pick names yourself from the franchisee list in the FDD rather than only calling the references you are given, and ask:
- What surprised you most in your first year?
- How accurate was the investment estimate compared to what you actually spent?
- When you have needed help, how quickly and how well did the franchisor respond?
- How long did it take before the business could pay you?
- Knowing everything you know now, would you buy this franchise again?
Of all the questions to ask before buying a franchise, that last one matters most. Listen to how long the pause is before the answer.
Here is what an honest answer sounds like. Akila, who owns MaidThis McKinney, on what she found after signing:
How MaidThis Answers These Questions
We would be hypocrites to publish a list of questions to ask before buying a franchise and then dodge it, so here are some of our answers up front. The total investment is $60,000 to $80,000, including the $42,500 franchise fee, and the full cost breakdown is public. Initial training runs five days in person. Our CEO personally calls new owners twice a month for their first three months, followed by monthly consultations and performance benchmarking against other locations. Your website and booking system are set up for you, and the business runs remotely from day one. Veterans get 10% off the franchise fee.
For everything else, ask us on a call and hold us to the same standard as everyone else. Our franchisee case studies are a starting point, but call our owners directly too.
The Steps to Buying a Franchise, in Order
Once you know the questions to ask before buying a franchise, here is the order to ask them in.
- Set your budget: total investment plus six to twelve months of living expenses.
- Shortlist categories that fit your skills, schedule, and goals.
- Request the Franchise Disclosure Document. Federal rules require you receive it at least 14 days before you sign or pay anything.
- Work through the franchisor questions above on discovery calls.
- Call current and former franchisees from the FDD list.
- Line up financing, whether savings, an SBA loan, or a retirement rollover.
- Have a franchise attorney review the FDD and agreement.
- Attend a discovery day if one is offered, then sign only when every answer makes sense.
The FTC’s consumer guide to buying a franchise walks through the FDD in detail, and the SBA’s guide to buying a franchise covers financing. If you are still choosing a category, our guide to the best franchises to own for beginners is a good companion read.
Frequently Asked Questions
What is the most important question to ask before buying a franchise?
Ask current franchisees whether they would buy the franchise again knowing what they know now. Franchisors can polish a sales presentation, but they cannot script dozens of independent owners. If most owners say yes without hesitating, that is a strong signal. If you hear long pauses and qualifications, dig deeper before you sign anything.
What should I look for in a Franchise Disclosure Document?
Start with Item 7 for the total initial investment, Item 19 for any financial performance representations, Item 20 for how many franchisees opened and left, and Item 3 for litigation history. Items 11 and 12 cover training and territory protection. Read the whole document, then have a franchise attorney review it before signing.
How long does it take to buy a franchise?
Most buyers take somewhere between two and six months from first inquiry to signing. Federal rules require that you receive the FDD at least 14 days before signing or paying anything, and financing, attorney review, and franchisee calls all take time. Be wary of any franchisor pressuring you to move faster than your own due diligence allows.
Should I talk to former franchisees too?
Yes. The FDD lists owners who left the system recently, and they often give the most candid picture of what did not work. One unhappy former owner is not a red flag on its own, but a pattern of similar complaints is. Ask why they left, what they would have done differently, and whether the franchisor treated them fairly on the way out.
Do I need a lawyer to buy a franchise?
It is strongly recommended. A franchise attorney can explain what the agreement actually commits you to, flag unusual terms around termination, renewal, and territory, and sometimes negotiate specific points. The cost is small compared to the size of the investment, and it is far cheaper than discovering a problem after you have signed.
What are red flags when buying a franchise?
Pressure to sign quickly, earnings promises made outside Item 19 of the FDD, high franchisee turnover in Item 20, evasive answers about fees, a reluctance to let you contact owners freely, and support that is promised verbally but not written into the agreement. Any one of these deserves a hard follow-up question. Several together deserve walking away.
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