The questions to ask a franchisor separate a useful first call from an expensive one. That call is a sales call, and the person on the other end is paid to move you forward. That is their job, and there is nothing wrong with it. Your job is different.
You are there to learn what this business really costs and what you actually get for your money. You also need to know what happens if it does not work out. Walk in with your questions written down, and you keep control of the pace.
Most buyers do the opposite. They get excited, they talk about themselves, and they leave the call knowing less than the franchisor does. Here is how to flip that.
Talk to me before you talk to a franchisor. I will guide you through the process at no cost to you.
Schedule a Free CallWhy the Questions to Ask a Franchisor Matter More Than the Pitch
You are not being sold a product. You are being considered for a long-term business relationship, and you get to evaluate them just as hard as they evaluate you.
The person you speak with is usually a franchise development representative. They know their system inside out and have had this conversation hundreds of times. You have probably had it twice. That gap is not unfair, but it is real, and preparation is how you close it.
The Federal Trade Commission is blunt about the stakes. Buying a franchise is like any other investment, and there is no guarantee of success.
Good preparation also protects the relationship. Specific questions signal that you are a serious buyer, not a tire-kicker. Franchisors respond well to that. My guide on how to buy a franchise shows where this call fits in the larger sequence.
Know What the Franchisor Owes You Before the First Call
Before you ask anything, understand what the law already entitles you to receive.
Every franchisor must give you a Franchise Disclosure Document, or FDD. That is a standardized document with 23 numbered sections covering costs, litigation, territory, contract terms, and franchisee contact information.
Under the FTC's Franchise Rule, you must receive the FDD at least 14 days before you sign anything or pay any money. You can also request it once the franchisor has agreed to consider your application. The FTC's Consumer's Guide to Buying a Franchise walks through each item in detail.
Knowing this changes the tone of your first call in three ways:
- You can ask for the FDD early. A franchisor who delays or discourages the request has told you something important.
- You stop asking questions the document answers. Spend your call time on judgment and context, not on numbers you can look up.
- You control the clock. Fourteen days is the legal floor, not a deadline. Take longer if you need it.
Money Questions: What Will This Really Cost Me?
Ask about the full cost of getting open and staying open, not the franchise fee.
The initial fee is the smallest number in the conversation. Build-out, equipment, inventory, licenses, insurance, and your own living expenses usually dwarf it. The FTC advises estimating first-year operating expenses plus up to two years of personal living expenses. Many franchises take more than a year to break even.
Bring these questions to the call:
- What is the realistic all-in number to open? Ask for the low end and the high end from Item 7, and what drives the difference.
- What is the royalty and how is it calculated? A royalty fee is an ongoing percentage of gross sales, and you owe it whether or not you are profitable.
- What goes into the advertising fund? Ask what share pays for national brand work, local marketing in my market, and recruiting new franchisees.
- What am I required to buy from you or an approved supplier? Required purchasing affects your margins for the life of the agreement.
- How much working capital do owners actually burn before break-even? Ask for the range, not the best case.
Financing deserves its own question. Ask whether the brand appears in the SBA Franchise Directory, since lenders use it to evaluate eligibility for 7(a) and 504 loans. Just be careful how you read it. The SBA states plainly that placement in the SBA Franchise Directory is not an endorsement and does not ensure success.
For a fuller cost framework, see my breakdown of franchise due diligence.
Support and Training Questions: What Do I Get for the Royalty?
You are paying a percentage of every dollar you ring up, so find out exactly what that buys.
Item 11 of the FDD summarizes training and advertising commitments. The document tells you what is promised, not how it feels in practice. Ask the franchisor these questions, then verify every answer with current owners:
- Who trains me, and what is their background? Ask about the trainers themselves, not just the curriculum length.
- How many franchisees does each support person cover? A ratio of 20 to 1 is a very different experience than 80 to 1.
- What does support look like in month nine? Opening help is common. Ongoing help is where systems separate.
- What has changed in the system in the last two years? Technology shifts, supplier changes, and new fees all show up here.
- Which franchisees are struggling, and why? A confident franchisor will answer this honestly.
Then close the loop yourself. Item 20 lists contact information for current and former franchisees. Calling them is the most reliable way to test what you were told. My guide on how to validate a franchise with existing owners covers who to call and what to ask.
Territory, Renewal, and Exit Questions
Ask what you own, how long you own it, and how you get out.
These answers live in Items 12 and 17, and they are the ones buyers most often skip. Franchise agreements can run as long as 20 years. Renewal is not automatic, and the terms you renew under may not match the terms you signed. After termination, non-compete restrictions can last as long as three years and can apply near any outlet in the system.
These are the questions that matter most:
- Is my territory protected, and from what? Protection from other franchisees is not the same as protection from company outlets or online sales into your area.
- How is the territory defined? Population, drive time, and zip codes produce very different footprints.
- What are the renewal conditions and costs? Ask whether royalties or standards can change at renewal.
- What happens if I want to sell? Ask about transfer fees, approval rights, and any right of first refusal.
- Do disputes go to court or arbitration, and in what state? Venue clauses can make a small dispute expensive.
Earnings Questions to Ask a Franchisor About Item 19
Item 19 is the only place a franchisor may legally make claims about sales, income, or profit.
If a representative quotes you a number that is not in Item 19, that is a problem worth pausing over. The FTC also gives you a specific right here. When a franchisor makes a financial performance claim, it must provide written substantiation if you ask for it. Most buyers never ask.
Use these on the call:
- Is this figure gross sales or net profit? High gross sales can still mean a location losing money after rent and labor.
- Is it an average or a median? A handful of top performers can lift an average well past what a typical owner earns.
- How many units are in the sample, and which ones were excluded? Excluding new or weak locations flatters the result.
- Are any of these units comparable to my market? Geography changes rent, wages, and demand.
- May I have the written substantiation for this claim? You are entitled to it.
No Item 19 at all is not automatically disqualifying. It does shift the entire burden onto your franchisee validation calls. My article on what to look for in FDD Item 19 shows how to read the footnotes where the real story usually sits.
Good Answers vs. Red Flags
How a franchisor answers tells you as much as what they say.
| You ask about | A good answer sounds like | A warning sign sounds like |
|---|---|---|
| Total investment | A range, with the drivers behind the high and low ends | One optimistic number, with costs described as "minimal" |
| Struggling franchisees | Named patterns, causes, and what the brand changed | "Everyone is doing great" |
| Earnings | Points you to Item 19 and offers substantiation | Verbal numbers that appear nowhere in the FDD |
| Timeline | Encourages you to take the full 14 days or longer | Discounts that expire, or "we only have one territory left" |
| Franchisee contacts | Hands you the full Item 20 list | Only a short curated reference list |
| Territory | Specific definition, in writing, with limits acknowledged | Vague reassurance that you will be "protected" |
Pressure is the clearest signal of all. A confident franchisor does not need to rush you. A strong brand would rather lose a poor fit early than sign one. If the answers feel rehearsed, slow down and ask the same question a second way.
Talk to me before you talk to a franchisor. I will guide you through the process at no cost to you.
Schedule a Free CallFrequently Asked Questions
How many questions should I bring to a first franchisor call?
Bring ten to fifteen written questions and expect to use about half. The first call is usually 30 to 45 minutes and part of it is mutual introduction. Lead with your money and support questions, since those shape everything else. Save territory and exit questions for the second conversation, once you have the FDD in hand.
When can I ask a franchisor for the Franchise Disclosure Document?
You can ask as soon as the franchisor has received your application and agreed to consider it. You must receive the FDD at least 14 days before you sign any agreement or pay any money. Many buyers request it earlier so they can spend their calls on interpretation rather than basic facts.
Is it rude to ask a franchisor about failed or unhappy franchisees?
No, and experienced franchisors expect it. Every system has owners who struggle. What matters is whether the franchisor can explain the pattern and what they changed in response. A brand that claims no one has ever failed is either not paying attention or not being straight with you.
Should I use a franchise consultant for these conversations?
A franchise consultant helps you compare brands objectively, prepare for calls, and interpret answers against what other systems in the same category offer. My guidance is free to you, because franchisors pay a placement fee when a match works out. That means you get an experienced second read without adding cost to your investment.
The strongest position you can take into a franchisor conversation is a calm one. You are not trying to catch anyone out. You are not looking for a perfect brand, because none exist. You are testing whether the numbers, the support, and the contract terms fit the life you want to build.
So do this before your next call. Write your questions to ask a franchisor down, request the FDD early, verify every answer with current owners, and let yourself walk away from anything that will not survive a follow-up question. If you want a second read on that list, call me at (561) 366-2462.
Talk to me before you talk to a franchisor. I will guide you through the process at no cost to you.
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