When considering whether to buy a particular Franchise, the best source of information is Franchisees themselves….and most often, they are delighted to talk to you about their experience with the Franchise.  In my 20+ years in Franchising, I am amazed at the number of times I have spoken to Franchisees who had NEVER spoken to other Franchisees before signing their Agreement.  That’s mind-boggling!  I’m sure you can imagine that many now WISH THEY HAD.  The unhappy ones now realize that they chose a Franchise, and actually put down their life savings (and borrowed even more) WITHOUT the information they desperately needed to make that decision.  There’s a lot you can learn from existing Franchisees, and I urge you not to ignore this valuable source of information.  Here are the critical questions to ask:

1.      How do you like the Franchise?  This is an open-ended question, and will bring out general likes and dislikes about the Franchise.

2.      Do you feel the Franchise supports you?  Again, a very general question that allows the Franchisee to identify strengths and weaknesses.

3.      Do you feel that your customers truly appreciate the Brand?  You want to see if the Franchisees see value in the Franchise Brand and products they sell.

4.      Was the Franchise helpful in getting store open?  You’ll want to know how much support you get during the (very hectic) development stages.

5.      How would rate the Training you received from the Franchise?  You want to know if the Franchise provided comprehensive business building & management training, or did they just teach technical “how-to” stuff.  

6.      Did the Franchise have an effective Grand Opening Package?  The Winners always help their Franchisees open their business with a bang.  They know the value of making a great “First Impression”.  

7.      What Marketing Support does the Franchise provide on an on-going basis?  Marketing is critical, and you want to how/if the Franchise helps you.

8.      How does the Franchise support you with supply-lines?  You need to know if the Franchise provides superior buying power, OR whether they actually cost you more because of rebates and other hidden costs.

9.      How often do you hear from the Franchise?  The battle-cry of Franchising is that you’re in business “For Yourself But Not BY YOURSELF”…..so make sure this Franchise lives by that creed.  Do they routinely visit or call Franchisees?  Do they send out newsletters, e-mails, text messages, carrier pigeons, etc.?  You want to see Leadership in the Franchise and feel that they are with you all the way through.  

10. Do you feel that the Franchise really cares about Franchisees?  This is a “Corporate Character” question, and it’s really critical.  Here’s what you really want to know:  Does the Franchise care MORE about the performance of its Franchisees, or its own Company profits?  The Winners know that the Company is only successful when Franchisees are successful.

11. How much money do you make?  Oh, there it is….the key question you’ve been waiting the whole phone call to ask.  Franchisees can tell you things about performance that the Franchisor is prohibited by the FTC from disclosing.  But don’t stop at profit….ask about sales, product cost, labor cost, how much rent do you pay, utilities, local marketing (in addition to standard ad royalty), etc. 

12. If you could start over again, would you go with this Franchise?  It’s the classic “Would you marry your spouse again” question…..and the answers will be very telling.  Don’t forget to ask why, or why not.  

Investing in a Franchise may very well be the largest business commitment you’ll ever made, and you need to know as much as you can BEFORE signing the Agreement.  So, open up the FDD (Franchise Disclosure Document), select 5 Franchisees and start calling.   Hey, we’re talking about your financial future here, so this is no time to be shy.  Some Franchisees will be forthcoming about their experience, and some will not.  That’s life.  So, if you reach some Franchisees they aren’t that helpful, call more Franchisees.  But when you reach that fabulous Franchisee who just loves to talk, go through the above questions and don’t hang up until he/she says “Uncle”.  Franchisees can give you some of the best information on assessing a Franchise……and you can bet that it will be far better than any smooth talk and glossy paper the Franchise pushes your way. 

Mark Kaplan is the Franchise Coach, and editor of BestFranchiseInformation.com. Mark is also the CEO of Great Wraps, Inc., a rapidly growing Franchisor of Hot Wrap & Grilled Sandwich Shops. Mark has spent over 20 years in Franchising, and he has a no-nonsense way of showing Entrepreneurs how to be successful in Franchising. Prior to Franchising, Mark championed major, national Brands for Corporate powerhouses like Coca-Cola, Nabisco Brands & Colgate Palmolive.