17 Questions to Ask Existing Franchisees

One of a series of Buy-a-Franchise articles

Published: Jan 24, 2008

Visiting a franchisee is most likely a two step process. The first step is to visit the franchisee unannounced during their peak hours. Be a “secret shopper”. This will give you a feel of how the franchise operation reacts under pressure (for more information please refer to my article titled “Be a franchisee Secret Shopper”).

The second step is to make an appointment to visit the franchisee during non peak hours. Set up an appointment to visit when you can get the attention of the owner. However, before you walk in to visit, you must prepare. You will want to develop a number of printed questions with space to record your answers. Here are some sample questions:

1 Why did you select this franchise over others in the same industry?

2 Are you generally happy with the franchisor? Do you feel that you receive value in return for the franchise fees that you pay?

3 Does the franchise name have value in this industry?

4 What is your labor situation like? Do you have difficulty in hiring or retaining quality employees?

5 Are your personal working hours more, less, or about what you expected? Do you have key employees that you can rely on?

6 Did you encounter any problems with your site selection? Did the franchisor assist you?

7 Was the initial training provided for you and other key employees adequate?

8 Did the franchisor assist you with your Grand Opening or other promotional stuff?

9 Has the franchisor stepped up to the plate with any ongoing support?

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10 Has the franchisor provided any co-operative advertising? Has the advertising benefited you?

11 Does the franchisor provide any operating, billing, or accounting systems for you? How do you like them?

12 Is the franchisor proactive in developing web based training and support functions?

13 Does the franchisor provide a web site for you or if not do they assist you with the construction of your site?

14 Is the franchisor receptive to ideas from you on how to improve operations?

15 What trends do you see developing in this industry?

16 Do you have plans to open additional franchise units?

17 If you had to do it all over again, would you? How would you do things differently?

In addition to these standard questions you should have developed other questions from your prior “secret shopper” experience. You will likely develop other thought patterns during your visit. Don’t be afraid to ask. Take as much time as you need or as much time as the owner will give you. Absorb everything that you can. There is no such thing as too much information.

When talking to the franchise owner make sure to pay attention to the owner’s body language. Is his or her eye contact good? Are they evasive? Are they believable?

If you think about it there are many considerations when it comes to making a decision on which franchise opportunity to chase. You can talk to the franchisor, you can research the opportunity on the franchisor’s web site, and you can enlist the assistance of many other professionals. But in my opinion there is no substitute for actually observing an existing franchise operation is action. That gut feel that you get when you walk in the door is so important. When you combine that shopping experience with good solid answers to the above questions you will develop a foundation for success.

Author Information

Barry Jark

Vice President - Operations at B-Source.com. Barry had experience in management, operations and finance as a bank president before joining the lively group at B-Source

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