The 10 Questions You Must Ask Before Buying Any Franchise

Skip these conversations and you'll be guessing on the most expensive purchase of your life. Ask all ten, in writing, before you sign.

Financial Performance

1. What does your Item 19 actually represent — top performers, all units, or selected segments? 2. What does a P&L look like for a mature, top-quartile unit? 3. What does cash-on-cash return look like in year three?

System Health

4. How many franchisees have closed, transferred, or been terminated in the last three years? 5. What is the average tenure of a franchisee in your system? 6. Can you connect me with three franchisees who opened in the last 12 months, and three who have been operating for 5+ years?

Support

7. What does ongoing support look like at month 6, year 1, year 3? 8. How do you handle a franchisee who is underperforming? 9. What is the territory definition and how is it protected?

The Real Test

10. What is the single hardest thing about operating this business that I won't find in your marketing materials?