Buying a Franchise!

What questions should I be asking franchise systems?

Investing in a franchise is a major decision. Not every franchise will be right for every individual.

Here are a few questions to ask franchisors when investigating if they are right for you:

  • Are you a member of the Canadian Franchise Association (CFA)?
  • How many years has the franchisor been operating? How many units do they have overall?
  • How does the franchisor choose franchisees? How are qualifications reviewed?
  • What makes the franchisor's product or service unique?
  • What kind of support and advice, including advertising, marketing and promotional assistance, does the franchisor provide franchisees?
  • Does the franchisor choose the location or does the franchisee?
  • Will you be provided with a disclosure document? Does it comply with provincial franchise laws or CFA's minimum disclosure requirements?
  • How much is the initial franchise fee?
  • What is the anticipated period of time between start-up and profitability?
  • What are the future plans of the franchise?