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15 Questions to Ask Any Franchisor Before Signing (Most People Skip #9)

You would not buy a house without an inspection. Do not buy a franchise without asking these 15 questions. Number 9 is the one that reveals the most about a brand's honesty.

TBWX TeamApril 11, 202610 min read
15 Questions to Ask Any Franchisor Before Signing (Most People Skip #9)

Most franchise buyers ask two questions: "How much does it cost?" and "How much will I earn?" Then they sign.

These are important questions. But they are not sufficient. The 15 questions below dig deeper. They reveal whether the brand is genuinely invested in your success or just collecting franchise fees.

The Questions

### Money Questions

1. What is the total all-in cost to open and operate for 3 months?

Not just the franchise fee. Everything. Equipment, setup, inventory, working capital. You want one number that represents the total cash you need.

2. What is the average monthly revenue across your network (not just the best outlet)?

If they only share the top performer, ask again for the average. The gap between the best and average tells you how variable outcomes are.

3. What is the royalty structure and are there any additional fees?

Ask specifically about marketing fund contributions, technology fees, and mandatory purchase premiums. Add them all up to get the true ongoing cost.

### Support Questions

4. What does training include and how long does it last?

Good brands train for 5-10 days covering product preparation, operations, food safety, and business management. Bad brands give you a 2-page PDF and wish you luck.

5. What happens after month 1? What ongoing support do I get?

The first month gets the most attention from every franchise brand. What matters is month 3, month 6, and month 12. Ask specifically what the ongoing support model looks like.

6. Will you help me choose and evaluate my location?

Good brands actively help with location selection because they know a bad location hurts their brand too.

### Risk Questions

7. How many outlets have closed in the last 2 years and why?

Every franchise network has closures. The question is whether the brand is honest about them and what they learned. Brands that claim zero closures ever are either lying or too new to have faced challenges.

8. What is the realistic break-even timeline for someone in my city?

Not the brochure number. Ask for data specific to your type of location and city tier.

9. Can I speak with 3 franchisees of my choosing (not ones you select)?

This is the question that separates honest brands from dishonest ones. A brand that lets you pick random franchisees from their outlet list has nothing to hide. A brand that only lets you talk to their handpicked "success stories" is controlling the narrative.

If a brand says no to this question, seriously reconsider your investment.

### Agreement Questions

10. What happens if I want to exit before the agreement period ends?

You need to know the penalty, the process, and whether you can sell the franchise to someone else.

11. Is my territory exclusive and how is it defined?

Get the territory definition in writing. "Exclusive in your area" means nothing. "Exclusive within a 3 km radius of your outlet address" means something.

12. Can the royalty percentage change during the agreement period?

Some agreements have royalty escalation clauses. A 5% royalty today becoming 8% in year 3 changes your economics significantly.

### Operations Questions

13. Can I source my own equipment and ingredients or must I use approved suppliers?

Mandatory approved suppliers at inflated prices is one of the most common ways franchises extract hidden revenue from franchisees.

14. What are my obligations regarding operating hours and menu compliance?

Some franchises require you to be open specific hours (even if those hours are unprofitable). Some require you to carry the full menu even if certain items do not sell in your market.

15. What is the process for menu changes or local additions?

A brand that allows zero flexibility in a country as diverse as India is ignoring market reality. Ask if you can add locally relevant items or adjust pricing for your specific market.

How to Use These Questions

Do not ask all 15 in one phone call. Spread them across 2-3 conversations. Start with the money and support questions. Move to risk and agreement questions once you are seriously interested. Save the operations questions for when you are close to signing.

Pay attention not just to the answers, but to how the brand responds. Confident, transparent answers indicate a brand with nothing to hide. Evasive, vague, or defensive answers indicate a brand that is not ready for scrutiny.

[TBWX is happy to answer all 15](/franchise/apply). We will also connect you with franchisees of your choosing from our network.

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