Questions about money
Ask what makes up the initial project budget and which costs can vary by property or format. Understand ongoing fees and contributions, and ask which assumptions are controlled by the franchisor versus the local operator.
Do not treat marketing figures as personal financial advice. Use approved information as an input to your own model and professional review.
- What is included in the initial fee?
- Which costs depend on the site?
- What ongoing fees apply?
- What working capital should I model?
Questions about support
Ask what training covers, who attends, how long pre-opening support lasts and what happens after launch. Clarify who supports site review, fit-out, recruitment, local marketing and operational problems.
Good answers should describe a process rather than relying on broad promises that the franchisee will be supported.
Questions about territory and growth
Ask how territory is defined, how availability is confirmed and whether future stores require separate approval. If you are interested in multiple units, discuss the conditions that should be met before a second or third location is developed.
Also ask what happens when another channel, delivery area or nearby store overlaps with the market you expected to serve.
Questions about operating standards
Understand which products, suppliers, systems and brand standards are mandatory. Ask how performance and compliance are reviewed and how updates to the system are communicated to franchisees.
The point of a franchise is consistency. Applicants should be comfortable with the level of control required to achieve it.