America's #1 Franchise Directory, Trusted for Over 15 Years

Checklist -- Assessing the franchisor

Franchisee Checklist - Assessing the Franchisor

The franchisor's company
  1. Is the franchisor soundly financed? Ask to see audited financial records for three years.
  2. What is the franchisor's credit rating?
  3. Who are the franchisor's accountants, bankers and lawyers?
  4. Is the franchisor a subsidiary of another company and if so whom? Is the parent company soundly financed? Ask to see their accounts as well.
  5. Does the franchisor have associate companies? If yes, who are they and what is the relationship between them and the franchisor?
  6. Does either the parent company or any associate operate franchises? If so, would they be in competition with you?
The company's history and experience
  1. How long has the franchisor been in this type of business?
  2. What business experience and qualifications have the franchise's directors and managers?
  3. Have any of the directors or managers ever gone bankrupt?
  4. Have they or the company been involved in any litigation or court judgments?
The franchise system
  1. Is the franchise operation a success?
  2. Does the franchisor still run any units him/her? If so, how many?
  3. Are they buy-backs or failed franchises or is the franchisor keeping prime site for him/herself?
  4. How many franchise outlets does the franchisor currently have? How many are in your country or state? What has the trend been in recent years?
Past and future of the franchise system
  1. When did the franchisor start franchising?
  2. How long has his/her pilot operation been running?
  3. Has he/she had any franchise failures or franchisee departures? If so, how many, and why did they fail?
  4. How many franchise owner-operated outlets does he/she intend having in the future? Where will they be and over what timeframe will they be developed?
  5. What innovations has the franchisor introduced since starting franchising? What plans does he/she have for the future?
Other questions
  1. How particular is the franchisor when selecting his/her franchisees? What selection criteria does he/she use?
  2. Can you interview some of the existing franchisees?
    Too many people rush into franchise agreements without carrying out a thorough investigation into the financial status of the franchisor. Many franchisees trading successfully in their local area find themselves in difficulty if/when the franchisor goes into liquidation. Be wary of franchisors who are not forthcoming with up-to-date financial information

Your Request List

You can add items by clicking the "Add to Request List" button or checkbox when you find something you're interested in.

You may add up to 15 items to your Request List

Your request list will follow you around the site.

When you are ready to complete your request for free information, click "Submit" in your Request List.

Why not get started by browsing our New Franchise Opportunities or Low Cost Franchise Directory?

You may only enter 15 items in your Request List.

To request information from your selected companies, just fill in the form and click "Submit".

OK, got it

Request Info From:


Your List is Empty

You can add items by checking the "Request FREE Info" boxes.

* indicates required field

Optional Information

Join our mailing list!

We share your information only with your selected franchises.