Skip to content
Franchise Fit Guide

Due diligence

Questions to ask franchisors

Last updated: October 2026

The most important questions to ask franchisors cover total cost, ongoing fees, territory, training, support, system health, and how you can exit.

Franchise Fit Guide groups the questions to ask potential franchisors into six areas below, adds ten questions for current franchisees, and lists what franchisors will ask you. Use them alongside the Franchise Disclosure Document, which Vetrepreneur notes the FTC requires franchisors to provide at least 10 business days before you sign or pay.

Prepare your questions with FranNet

What questions should I ask before buying a franchise?

Ask for specifics, in writing where possible, and check each answer against the FDD and against current owners. Vague answers to questions about fees, closures, or territory are themselves useful information.

SCORE offers a free template of questions to ask franchisors. The groups below go further by tying each question to the decision it informs.

Questions to ask potential franchisors

Money and fees

  • What is the full initial investment range, and what pushes owners to the high end?
  • What are the royalty and marketing fund percentages, and are there minimums?
  • What other recurring fees apply: technology, training, renewal, transfer?
  • How much working capital do new owners typically need before breakeven?

Territory and location

  • Is my territory protected, and how is it defined?
  • Who chooses and approves the site?
  • Can you place another unit, or sell online, inside my area?

Training and support

  • How long is initial training, where is it, and who pays for travel?
  • What support do owners get in the first 90 days and after?
  • How many field support staff are there per franchisee?

System health

  • How many units opened, closed, and transferred in the last three years?
  • Why did franchisees leave the system?
  • Is there any pending litigation with franchisees?

Marketing

  • What does the national marketing fund pay for?
  • What local marketing am I required to do and spend?
  • How do top-performing owners attract customers?

Exit and renewal

  • How long is the term, and what are the renewal conditions?
  • Can I sell my franchise, and what approvals are required?
  • What non-compete terms apply if I leave?

What are 10 questions to ask a business owner in the system?

Current franchisees are the best check on what a franchisor tells you. Item 20 of the FDD lists contacts for current and former owners. Call several, including some the franchisor did not suggest.

  1. How long did it take to break even?
  2. Was the investment estimate accurate?
  3. How good was initial training?
  4. How responsive is support when something goes wrong?
  5. What surprised you most in year one?
  6. How many hours a week do you work?
  7. Does national marketing bring you customers?
  8. Would you buy this franchise again?
  9. What would you do differently?
  10. Who else should I talk to?

What questions will a franchisor ask you?

Fit and motivation

Why this franchise? Why now? What makes you a good fit? Do you understand what being a franchisee means, including following a system you did not design?

Experience and plans

What management or leadership roles have you held? How will you finance the business? Where do you want to locate? Is your partner supportive? What is your local marketing plan?

A lesson from a former franchisee

Franchise Business Review quotes Dennis Monroe, who owned a ColorAll franchise from 2005 to 2014, saying he would have negotiated a tapered franchise fee and a reduced minimum, because “7% or $1000 minimum is a large load during down markets.” Ask how fees behave in slow months before you sign, and have a franchise attorney review the agreement.

For the full process these questions fit into, see how to choose the right franchise.

Common questions

What questions should I ask before buying a franchise?
Ask about total investment, ongoing fees, territory protection, training length, support after opening, how many units opened and closed recently, and how you can sell or exit. Then ask current franchisees whether reality matched what they were told. SCORE publishes a free template of questions to ask franchisors that is worth printing. More in the FAQ
What are good questions to ask potential franchisors?
Strong questions include: What is the full investment range, and what pushes owners to the high end? What territory rights do I get? What does training cover, and who pays for travel? What marketing do you provide? How many franchisees left the system in the last three years, and why? Which owners can I call? More in the FAQ
What are 10 questions to ask a business owner?
When calling current franchisees, ask: How long did breakeven take? Was the investment estimate accurate? How good was training? How responsive is support? What surprised you? How many hours do you work? How effective is national marketing? Would you buy again? What would you do differently? Who else should I talk to? More in the FAQ
What is a franchise discovery day?
A discovery day is a meeting, often at the franchisor’s headquarters or online, where serious candidates meet leadership and support staff and see how the system runs. It usually comes late in the process, after FDD review and franchisee calls. Bring your remaining questions and pay attention to how directly the team answers them. More in the FAQ
What questions will a franchisor ask me?
Expect questions about why you want this franchise, your management and industry experience, how you plan to finance the business, whether your family supports the decision, where you want to locate, and how you will market locally. Franchisors are judging fit too, so honest, specific answers save time for both sides. More in the FAQ
Can I negotiate a franchise agreement?
Sometimes, on limited points. Many franchisors keep core terms uniform, but some will discuss items like territory or development schedules. Franchise Business Review quotes former franchisee Dennis Monroe saying he would have negotiated a tapered fee because “7% or $1000 minimum is a large load during down markets.” Have a franchise attorney review the agreement. More in the FAQ
See all 46 franchise questions answered

Ask better questions with a guide beside you

FranNet consultants provide a structured approach to researching franchise opportunities, so you know what to ask and when. It is free to you.

Talk to FranNet