Checklist

12 questions to ask before buying a franchise

Good due diligence is not hostile. It is how both sides discover whether the relationship deserves to continue.

Questions for the franchisor

  1. How many UK locations opened, transferred and closed in the last three years?
  2. What evidence supports each sales or earnings illustration?
  3. What is included in the initial investment—and what is not?
  4. Which suppliers and systems are compulsory?
  5. How is territory defined, protected and reviewed?
  6. What training and continuing support are contractual?
  7. What happens when a franchisee underperforms?
  8. How may the business be sold, renewed or exited?

Questions for franchisees

  1. What surprised you after opening?
  2. How much working capital did you actually need?
  3. Which support is genuinely useful?
  4. Knowing what you know now, would you choose the same franchise again?

Use your answers to sharpen the shortlist.

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