Five great questions to ask before investing in a franchise

As a franchisor, I’m putting the shoe on the other foot in this article which is designed to support franchisees in their discovery process as they decide whether to invest in a franchise and importantly, which one to choose!

Having met hundreds of prospective franchisees over the past five years, I have a good steer on questions to ask that serve both parties.

Agreeing a franchise should be very much a two-way process where both parties decide whether it’s a good fit. If both decide to proceed, great! If not, great too, because for at least one party the partnership isn’t right.

One of the biggest red flags for us a franchise is franchisees who don’t ask many questions. Sometimes this can mean that their interest level is low, but it’s more concerning if they want to proceed in the absence of asking for the right information.

As a franchisor it is your duty to provide the necessary information in a palatable way for prospective franchisees. As a franchisee, you then have to dig deeper and ask questions that are individual to you.

In my experience, the right people ask the right questions when it comes to the discovery process. So here’s my top tips for anyone looking into investing in a franchise:

Can I speak to five franchisees at different stages of their franchise journey?
Who are your top five performers and what is their revenue and profit?
Who are your lowest five performers and what is their revenue and profit?
What are the best performers doing differently to those who aren’t seeing the same success.
What are the aims of the overall franchise and what are your aims for the franchisees?

The answers to these questions will give you a good understanding of the brand’s ethics, values, financials, transparency and what it takes to be successful with the franchise model.

There are of course 100 more questions that you should ask and some to consider are ones that are personal to you. If work-life balance matters to you, didn’t hide it. If you want to go on holiday 3 times a year, ask if that works for the franchise model.

Starting a franchise is a huge decision, so make sure you are asking all the right questions to get all of the key information.

Wishing you the very best of luck with your franchise discovery process. If you get the decision right, starting a franchise will be one of the best decisions you’ve ever made. Good luck!

James Cutting

James Cutting is the Founder of Football Fun Factory, a children's football coaching franchise with the bold and ambitious aim of becoming the world's leading children's football coaching organisation. The FFF has gone all-in on social media content creation and aims to stand out from the crowd with high-quality, engaging, story-telling content produced and published at scale.

James and the Football Fun Factory team have grown their business nationwide by connecting passionate football coaches to the brand and by living and breathing the ethos and values of the company.

Having spent a decade working within a professional football club environment, James created a brand to offer something different to parents of children aged 2 to 12.. The FFF's Founder is a UEFA qualified football coach, turned entrepreneur, and uses this unique skillet to bring football fun to the masses.

James is passionate about supporting other franchise companies and businesses and will be seen at the top of your LinkedIn page on a regular basis, sharing content that is designed to tell his story and help others.