Questions you should ask a franchisor before investing in their franchise

If you are considering investing into a franchise, there are some questions you should ask before you take the plunge. Working with a franchise can be an incredibly profitable decision if you choose the right one and work hard at it, but you’ll want to make sure the investment is right for you first. Take the time to consider these questions about buying a franchise before jumping in, and you’ll be able to avoid some common pitfalls that many new franchise owners fall into.

Most important questions to ask before buying a franchise

When you buy a franchise, it is important to ask questions that both allow you to determine if the franchise is a good investment and to establish that your franchisor is trustworthy. Here are some of the most important questions to ask before buying a franchise.

  • Question 1: Do I need prior-experience?

As franchising becomes more common and more popular, it seems like everyone wants to sell franchises, which results in almost every type of business being franchised. That said, not all franchises are right for everyone. For example, if you’re considering starting a hair salon and have no prior experience with running a salon, then perhaps it’s best to pass on buying one as your first foray into entrepreneurship. Franchises typically come with manuals that will provide guidance on how to run your store but if there is no background knowledge or experience in your field of choice then purchasing an already established system may not be for you.

  • Question 2: Are training programs provided?

If training programs aren’t provided for employees or new franchisees, perhaps consider investing into a different franchise for sale especially if you are a new entrepreneur and have no previous experience in running your own business before. This is one of the reasons why buying a franchise is such a popular choice among new entrepreneurs since they can run a business with support provided so if you find not much support is provided with a specific franchise it might be best to consider other options.

  • Question 3: Who will provide financial assistance?

Typically, new franchisors look for people who can provide capital as well as cash flow. If that’s what they are looking for, then be sure to ask them how much money they will need and when. Although there is no set amount of capital you need to make an investment in a franchise successful, larger amounts might open more doors. The same goes for sources of operating funds: Depending on what type of business you are buying into and its size, your franchisor may require that you have access to certain cash flow streams in order to run your business successfully. Ask them which ones they need and when they would like it by.

  • Question 4: What is your success rate for new franchisees?

Another important question to ask a franchisor is do they keep statistics on the franchisees that succeed. If you see a high success rate of a particular franchise brand of course as an aspiring business owner that makes you want to invest more time into that brand if it has worked successfully for many other people, there is no reason why it can’t work for you as long as you put the time in and work hard.

  • Question 5: Do I get help with marketing?

One of your biggest issues in starting a business is going to be marketing. If you’re buying a franchise, then marketing questions can probably be answered. After all, if people already know about and like the brand, you don’t have to worry too much about creating an image. However, there are lots of other things that need to be considered – do they provide financial support for advertising campaigns? How do they handle social media? Do they help with public relations or community outreach? How much creative control will I have over my marketing plan? Will I have access to training on how to manage my own online presence as well as how to design ads and create marketing plans on my own? Do these services cost extra or are they included in our fee structure?

  • Question 6: What are the franchise earning projections?

One of the best questions to ask is about how much money do franchisees make? It’s not something a franchisor will openly talk about since it can be pretty shocking to people when they realize that even with all of their hard work and sacrifice, if they aren’t successful, it could take 5-10 years or more to see any meaningful amount of income. The good news is that nowadays, most franchisees are making some level of income within their first year but this all depends on the franchise you invest in. Remember not all franchise opportunities are created equal so it’s always a good idea to ask this question before making any investment.


Before you decide to invest in a franchise, take some time to research the market and think about your goals. Before signing any contracts, talk with lawyers and other professionals who can give you advice on whether it makes sense for your situation. Most importantly, remember that while it’s possible to make money with franchises, if they don’t meet your needs or expectations, they can end up costing far more than their initial investment.

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