15 Questions to Ask Before You Buy a Franchise

Published: April 26, 2025 • Reading Time: ~9 min

Buying a franchise can be life-changing — for better or worse. The right franchise can give you a proven business model, instant brand recognition, and a built-in support network. The wrong one can leave you tied to an underperforming concept, locked into fees, and wondering where all your money went.

The difference between those two outcomes often comes down to the questions you ask before you buy. These aren’t just formalities; they’re your best defense against making a costly mistake.

Here are 15 essential questions every future franchise owner should ask — along with why they matter:

1. What’s the Total Investment Required?

Franchise fees are just one piece of the puzzle. Ask about build-out costs, equipment, signage, inventory, initial marketing, and working capital. Many first-time buyers underestimate how much it really takes to open the doors.

2. What Are the Ongoing Fees?

Royalty fees, marketing contributions, technology fees, supply markups — these add up fast. Understanding these costs up front helps you calculate your breakeven point.

3. What’s Included in the Franchise Fee?

Some franchisors include training, opening support, and marketing materials. Others cover very little. The value of the franchise fee can vary widely.

4. How Long Has the Franchise Been Operating?

A well-established brand with years of experience has more data, more refined systems, and less risk than a startup concept.

5. How Many Locations Are Open and Operating?

This shows traction. If the brand has been around for 10 years but only has a handful of locations, ask why.

6. What Are the Average Gross Revenues?

You want real numbers, ideally from the Franchise Disclosure Document (Item 19). Remember: averages can be misleading — look at ranges and medians too.

7. What’s in Item 19?

Item 19 is where franchisors disclose financial performance representations. If they don’t provide one, that’s a yellow flag.

8. How Long to Break Even?

You need realistic expectations for how quickly the business will cover expenses and start generating profit.

9. What Training and Support Is Provided?

Good training covers more than opening week. Ask about ongoing support, field visits, and marketing help.

10. What’s the Competitive Advantage?

If you can’t clearly explain why customers would choose this brand over the competition, you may struggle to grow.

11. Are Territories Exclusive?

Exclusive territories prevent other franchisees from competing with you in the same market. Without exclusivity, your sales could be cannibalized.

12. What’s the Franchisee Turnover Rate?

If many franchisees are leaving, find out why. It’s often a sign of deeper problems.

13. Can I Speak to Current Franchisees?

The FDD has contact info for current and former owners. Speaking to them can reveal truths the franchisor might not share.

14. What Does a Day in the Life Look Like?

Make sure the actual role of the owner fits your lifestyle and skills.

15. What’s the Exit Strategy?

Can you sell your franchise easily? Are there transfer fees? Some brands have strict resale rules.

Bottom line: A franchise is not a passive investment — it’s a business. These questions will help you see if the brand is worth your time, money, and energy.

📞 Thinking about buying a franchise? We’ve helped hundreds of buyers find the right match — and avoid costly mistakes. Schedule a free consultation today and let’s talk about your goals.

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