Questions to Ask a Franchisor Before You Sign

Signing a franchise agreement is one of the biggest commitments you will make. The good news is that you get to interview the franchisor as much as they interview you. The best franchisors welcome tough questions, because owners who know what they are signing up for are more likely to succeed. Use this list in every conversation, on Discovery Day, and when you talk with your attorney.

Questions about the brand and leadership

• How did the company start, and who are the key leaders I will work with?
• Do members of the leadership team still work in the business day to day?
• What does the brand stand for, and how do you protect that culture as new owners join?
• How do you handle disagreements between the franchisor and franchisees?
• Is there a franchisee advisory council or another way owners give feedback?

The FDD’s early Items describe the franchisor’s history, leadership, and any litigation or bankruptcy history. Read those sections before your first meeting.

Questions about training

• What does initial training cover, and does it happen before opening?
• Who attends: just the owner, or managers and key staff too?
• Where is training held, and who leads it?
• What happens if I need more training after I open?
• Is there an operations manual, and how is it kept up to date?

Compare the answers to Item 11 of the Franchise Disclosure Document (FDD), which describes the franchisor’s training and assistance obligations.

Questions about support after opening

• Who is my main point of contact once I am open?
• What does ongoing field support look like in practice?
• What marketing guidance do you provide for grand opening and local marketing?
• How are approved products and suppliers chosen, and can I suggest new ones?
• What technology and systems will I use, and who supports them?

Questions about fees and costs

• Can you walk me through every fee in Items 5 and 6 of the FDD?
• What does the estimated initial investment in Item 7 include, and what does it not include?
• How much working capital do owners typically plan for, according to the FDD?
• Are there required purchases from you or specific suppliers?
• Which fees could change over the life of the agreement?

Rely on the FDD, not verbal estimates. If a number you hear is not in the document, ask why.

Questions about territory and real estate

• How is my territory defined, and what protection does it provide (Item 12)?
• Who finds the site, and who approves it?
• What help do you provide with lease negotiation and buildout?
• What happens if I want to open a second location later?
• Is a franchise available in my area, and are there any restrictions I should know about?

Questions about earnings claims

• Does your FDD include a financial performance representation in Item 19?
• If yes, what assumptions and data is it based on?
• If no, how should I build my own projections, and who should help me?

Under federal rules, financial performance information can only be provided through Item 19. Be cautious of anyone who shares income or profit promises informally. The FTC’s Consumer’s Guide to Buying a Franchise explains why.

Questions about the agreement itself

• How long is the initial term, and what are the renewal conditions?
• Can I sell or transfer my franchise, and what approval is required?
• What are the grounds for termination by either side?
• Are there non-compete obligations during or after the agreement?
• What is my required level of personal involvement (Item 15)?

Review every answer with a franchise attorney before you sign.

Red flags to watch for

As you ask these questions, pay attention to how they are answered, not just what is said. Be careful if a franchisor:

• Pressures you to sign or pay quickly, or discourages you from using an attorney.
• Shares income or profit figures that do not appear in Item 19 of the FDD.
• Gives vague answers about training, support, or who you will work with after opening.
• Seems more focused on selling franchises than on how existing locations are run.
• Cannot clearly explain how your territory is defined.

A confident franchisor answers directly, puts important commitments in writing, and encourages you to take your time.

Questions to ask yourself

Finally, turn the questions inward. Do I believe in this product and this brand? Would I enjoy the daily work? Do I have the financial runway and family support? Our article on signs you’re ready to own a franchise can help you answer honestly.

How SuppLife approaches these conversations

At SuppLife, we would rather have a real conversation than make a hard pitch. Our process includes an introductory call, an application, delivery of our FDD with time for review with your advisors, and a Discovery Day at our Bristol, CT flagship where you can see the shake bar, lounge, and sales floor and ask your questions in person. See the full SuppLife franchise ownership process, browse the franchise FAQ, read why owners choose SuppLife, or start on our franchise page. For more due diligence tips, see what to look for in a vitamin shop franchise.

This information is not an offer to sell a franchise. Offers are made only by Franchise Disclosure Document.