You're getting close to buying a franchise.
You've done your research on the one you like best. You've read the Franchise Disclosure Document. You've talked to a dozen existing franchisees.
And now you're sitting across from members of the home office franchise team, ready to make the most of it.
This is your moment. Use it well.
The questions you ask during Discovery Day, or during any formal meeting with the franchisor, can reveal things the FDD never will, such as:
- Their typical tone
- How the culture really works
- How transparent they are
- Their focus on franchisee profit
- How well they’ll support you
And more.
With that in mind, here are five questions worth asking the franchise team face-to-face—and what the answers should tell you.
Getting the Most Out of Meeting the Corporate Franchise Team - One of the primary steps of buying a franchise is meeting with the members of the corporate franchise team. These people will function as your built-in support system in your journey as a franchisee. - The answers to the questions you ask this team will tell you things that even the formal paperwork can't such as clues to how the culture works and how transparent they will be with you. - The key is asking the right questions. This post outlines five questions you should ask your prospective home office franchise team — and what the answers should tell you. |
5 Questions You Need to Ask the Home Office Franchise Team
1. Are There Any Major Technology or Equipment Upgrades Planned for the Current System?
This question matters more than most new franchise buyers realize.
Franchise systems evolve. Software gets updated. Equipment gets replaced. Point-of-sale systems get overhauled. These changes cost money…sometimes a lot of it.
If the franchisor has major upgrades on the horizon and doesn't volunteer that information, you're walking into a financial surprise.
So, ask directly and listen carefully. A franchisor who says "there’s nothing really planned" when a known system-wide tech overhaul is six months away isn't a franchisor you want to be in business with.
A good answer is specific. It acknowledges what's coming, explains the timeline, and tells you how costs will be handled. That's transparency. That's what you're looking for in a franchisor.
2. Does the Franchisor Provide Hands-On Assistance During Pre-Opening, Grand Opening and the Initial Operating Period?
If you’re new to small business ownership, opening a new franchise location can sometimes be controlled chaos. You’ll need support.
However, "support" is a word that means different things to different franchisors.
For instance, some franchise companies send a dedicated field rep or two who stay on-site for a few days or longer. Others may offer an in-person support person (or team) for your grand opening and that’s it.
When discussing the grand opening process, ask specifically about type, duration, and cost. For instance:
- What kind of help arrives, and when?
- Is someone physically present on opening day? How long do they stay?
- Does the assistance come at no extra charge, or will it show up as an additional fee buried somewhere in your agreement?
The answers will tell you a lot about how this franchisor operates.
Strong systems tend to have structured pre-opening protocols. They've opened tens if not hundreds of locations. They know what new franchisees need. And they show up for them.
3. What Percentage of Sales is Recommended or Required for Marketing?
Essentially, there are two buckets here: the national marketing fund and any local advertising and marketing requirement. Both affect your bottom line every single month.
Most franchise agreements include a required marketing contribution. The number will be listed in the FDD. Know the number.
But beyond knowing the number, it’s imperative to ask how the national fund is managed. Ask who controls the spending decisions. Ask how franchisees are represented in that process. Then, if there's a separate local advertising requirement on top of the national contribution, ask how it is managed too.
Importantly, a combined obligation of two to three percent of gross sales is common. Higher isn't always bad. But you need to know what you're committing to before you sign. And you need to know whether that money is being spent effectively on your behalf.
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4. Is There a Franchise Owners Association or Advisory Council?
The answer to this question can separate strong franchise systems from weak ones fast.
A franchise owners association is an independent group of franchisees who have an organized voice. An advisory council gives franchisees a seat at the table when the franchisor makes decisions that affect the entire system.
Both are good signs. Both signal that the franchisor respects its franchisees as business partners, not just royalty-paying customers.
If the answer is no, if there's no association, no council, no formal structure for franchisee input…ask why. The response will tell you everything you need to know about the relationship you're considering.
5. Does the Franchisor Provide Training Materials for New Staff Beyond the Operations Manuals?
You will hire people. Those people will need to be trained. The question is whether you're doing it alone.
Operations manuals are the foundation. But they're not always enough for front-line staff who need quick, practical guidance.
Thus, you need to ask whether the franchisor provides supplemental training tools, videos, quick-reference guides, digital modules, and onboarding checklists.
The best franchisors have built this out. They've invested in making it easy for you to bring new employees up to speed quickly. That investment protects the brand quality. It protects your reputation. And it also protects customers.
Bottom Line
Good franchisors consistently welcome the tough questions.
With that in mind, if anyone on the franchise team becomes uncomfortable when you ask for specifics, pay attention. Your due diligence window is the one time you have full leverage as a buyer. Use it.
If you’re happy with what you hear and you feel you’re ready to become a franchisee, move forward.
Ask everything. Assume nothing. And never sign a Franchise Agreement until you're satisfied with what you've heard.
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This post was written by The Franchise King®, Joel Libava. He is the author of two books on how to buy and how to research a franchise and advises people looking to make a smart decision on a franchise to own.