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Questions to Ask Before Buying a Franchise
Twenty-four questions across five conversations — the FDD itself, the franchisor, current and former franchisees, your professional advisers, and you. Work through them here, or print the checklist and bring it.
0 of 24 asked
Mark questions as you ask them — your progress is saved on this device. There are no right answers here, only answers worth hearing before you sign.
Check the FDD first
5Before any calls — the filing already answers these. Read it, or ask Clara.
What is the full set of fees I'll pay — initial, ongoing, and in the fine print?
The fee tables run beyond royalty: technology, marketing, audit, transfer, renewal.
What will it cost to open, including working capital?
Note whether the working-capital line covers three months or twelve.
Is the system growing or shrinking — and how many outlets closed, transferred, or were terminated?
Is there a financial performance representation — and who's included in it?
If there's no Item 19, that's worth asking about too.
Has the franchisor or its leadership disclosed litigation or bankruptcy?
Already have the FDD in your Clearly™ Workspace?
Guided Review walks through the filing Item by Item. When a suggested question belongs in a conversation with the franchisor, franchisees, or your advisers, add it to Questions to Ask. Those questions appear on your Questions to Ask screen and in the PDF you can download from the Workspace.
Ask the franchisor
5Discovery Day and sales calls. You're allowed to ask hard questions — note what gets answered in writing.
What does my territory actually protect — and what can you still do inside it?
Online sales, delivery, and company-owned outlets often sit outside 'protected.'
What support do I get at opening, and what continues after?
What are the most common reasons franchisees struggle in their first year?
How are required purchases priced — and does the franchisor earn revenue on them?
What happens at renewal — and which terms can change?
Ask franchisees
5Validation calls — current owners from the Item 20 list, and former owners especially.
Knowing what you know now, would you buy this franchise again?
How long did it take to reach break-even — and what surprised you about costs?
How responsive is the franchisor when something goes wrong?
Do the Item 19 numbers match your experience?
If you were in my position, what would you ask the franchisor?
Ask your professional advisers
4A franchise attorney and an accountant, before you sign — not after.
Attorney: which contract terms differ from what the FDD summary led me to expect?
Attorney: what am I personally guaranteeing — and what are my exits if this doesn't work?
Accountant: does my capital cover the Item 7 high end plus living expenses to break-even?
Accountant: how do the unit economics look after royalties, ad fees, and debt service?
Ask yourself
5The questions no one else can answer — worth writing your answers down.
Am I buying a job, a business, or an investment — and does this opportunity deliver that?
Can I follow someone else's system, without changing it, for the length of this agreement?
If revenue is half of plan in year one, can we handle it — financially and at home?
Have I talked to franchisees who left the system, not just the happy ones?
What would have to be true for me to walk away?
The printable
Bring it to Discovery Day.
All 24 questions with room for notes — print it, save it, or share it with a spouse or adviser before your calls.