Due Diligence

Research questions to ask franchisees:

  • How long have you operated the franchise?
  • Why did you choose the franchise?
  • What was your biggest surprise after you opened?
  • Is it hard to find and hire employees?
  • How did you attract customers?
  • When did you start breaking even?
  • Have your sales and profit met your expectations?
  • If this is a business I’m good at can I earn (pick a number 50, 75, 100, 150, 200, 250), in my second or third year?
  • Does the franchisor help you get a good price on products and supplies?
  • How would you rate the training program?
  • How would you rate the support?
  • Hardest thing about running the franchise?
  • Would you share your monthly expenses?
  • Could you help me with my proforma?
  • How would you rate a franchisor and franchisees relationship?
  • Would you buy again?