Interviewing the Franchisor: Key Questions to Ask and Why They Matter

When exploring a new franchise opportunity, your due diligence typically involves reading the Franchise Disclosure Document (FDD) and speaking with current franchisees. However, one step that often gets overlooked—or rushed through—is interviewing the franchisor directly. This meeting is your chance to get a feel for the people behind the brand, learn about their long-term vision, and decide whether it aligns with your own goals and values. Here’s how to conduct an effective franchisor interview and the critical questions you need to ask.

1. Cultural Fit

You’re not just buying a business model—you’re entering a partnership. Understanding how the franchisor handles communication, conflict resolution, and day-to-day operations can help you assess whether you’ll be compatible in the long run.

2. Evaluating Support

A big reason to invest in a franchise is the support system. Speaking directly with the franchisor clarifies what kind of training, marketing, and operational guidance you can realistically expect. This becomes even more critical when considering an emerging franchise.  In these cases the Founder and their team is onboarding and training you and your staff, so you need to feel very comfortable with them and their ability to support you before moving forward.

3. Transparency and Trust

An open and forthcoming franchisor who is willing to address your concerns is a positive sign. If they brush off questions or respond vaguely, that could be a red flag worth further investigation.  If you find that you don’t trust the franchisor or find mistrust as a common them when you speak to franchisees, it is best to find a better fit.

Before connecting with the President/CEO/Founder of a franchise brand, you will have compeleted some due diligence and education with their franchise development team.  They should provide expectations and what to prepare for before you “sit down” with their executive team on a call or Zoom.  Some common items to prepare include:

• Review the FDD. Have a clear understanding of fees, obligations, and franchisee support, so you can ask pointed follow-up questions.
• Talk to existing franchisees. Their experiences might reveal areas worth probing in your conversation with the franchisor.
• Have a plan. Have your game plan for developing the business thought through and mostly defined.  Especially if there are multiple people involved in the operation of your business, funding questions or any questions you have for proper expectations.
• List your priorities. Identify the key aspects of your future business that matter most—marketing, training, territory protection, etc.—and prepare questions accordingly.

1. What Are Your Goals and Vision for the Franchise Network?

• Why It Matters: Understanding the franchisor’s long-term plans—whether aggressive expansion or steady, sustainable growth—helps you gauge if their trajectory aligns with your investment timeline and personal ambitions.
• Follow-up: Ask about new product launches, target markets, or technology enhancements on the horizon.

2. How Do You Support New Franchisees?

• Why It Matters: A well-structured onboarding program can dramatically impact your early success. You’ll want to know how much hands-on help you’ll receive.
• Follow-up: Inquire about specific training programs, on-site visits, ongoing mentorship, their ability to keep up with the growth and available resources (e.g., marketing materials, operations manuals).

3. What Does Your Marketing and Advertising Program Entail?

• Why It Matters: Strong brand recognition and effective marketing are cornerstones of a successful franchise. Ask how the franchisor’s marketing fund is allocated and what promotions or campaigns you can access.
• Follow-up: Clarify what portion of your fees goes toward marketing and whether you can execute local promotions independently.

4. How Do You Handle Territory Assignments and Protection?

• Why It Matters: Territorial rights can directly affect your sales potential. If the franchisor doesn’t offer protected territories or has vague guidelines, you could face direct competition from the same brand nearby.
• Follow-up: Ask for details on how territories are defined and whether there’s any provision for adjusting boundaries as markets evolve.

5. What Is Your Approach to Innovation and Adaptation?

• Why It Matters: Markets change—fast. You need to know if the franchisor invests in R&D, new technology, or updated operational best practices to stay competitive.
• Follow-up: Ask about recent product or service rollouts and how franchisees were consulted or supported during these changes.

6. Can You Share Examples of Franchisee Success Stories—And Failures?

• Why It Matters: Real-world examples show how the franchisor works with both high-performing and struggling franchisees. Understanding their approach to problem-solving can give you confidence in their support mechanisms.
• Follow-up: Ask how the franchisor addressed the challenges of failed locations and what lessons were learned.

7. How Do You Handle Conflict Resolution?

• Why It Matters: Disputes can arise over royalties, marketing strategies, or territory infringements. Knowing the franchisor’s methods for handling disagreements tells you a lot about their commitment to fair and open communication.
• Follow-up: Inquire if there’s a mediation or arbitration process outlined in your franchise agreement.  *Add this to your list of questions for existing franchisees as well!

8. What Are Your Expectations of Franchisees?

• Why It Matters: Success in a franchise system often relies on following the franchisor’s rules and guidelines. Understanding their performance metrics, compliance standards, and communication expectations ensures there are no surprises down the line.
• Follow-up: Clarify how often you’ll need to send reports, attend training sessions, or participate in brand-wide initiatives.

As you collect information, keep the following in mind:

• Consistency with the FDD: Any promises or claims made verbally should align with details in the Franchise Disclosure Document. If they don’t match, ask for clarification—preferably in writing.
• Depth of Detail: The best franchisors are transparent and specific. Vague or dismissive answers can be a sign of disorganization or unwillingness to be upfront.
• Your Comfort Level: Evaluate the franchisor’s communication style. Do they encourage open dialogue, or do you sense reluctance? Remember, this is the beginning of a long-term relationship.

1. Review Your Notes

Reflect on the franchisor’s responses and see how they match your expectations, risk tolerance, and investment capacity.

2. Talk to Current Franchisees

Cross-check what you learned with real-world experiences. Current franchisees can verify whether the franchisor’s statements hold true.

3. Seek Professional Guidance

If you have lingering questions, consider consulting a franchise attorney or a franchise-savvy accountant before making any commitments.

Interviewing the franchisor is a vital step in your due diligence process. It’s an opportunity to get behind the marketing hype and assess whether the brand’s leadership, culture, and roadmap align with your entrepreneurial vision. By asking the right questions—and taking time to analyze the answers—you’ll be better prepared to decide if this franchise is the right fit for you.

Ready to explore franchise ownership and need guidance on how to vet the franchisor effectively? Don’t hesitate to choose a time to talk for personalized advice. Making an informed decision now sets the stage for a more successful and rewarding franchise journey later.