If you're thinking about signing a franchise agreement, you're likely weighing up more than just brand recognition. These agreements are legally binding and long-term, so it's important to ask the right questions before you commit.
Here are 50 questions our clients regularly ask, with context to help you understand why each one matters.
1. What are my main obligations under this agreement? Before signing, you need to be clear on what’s expected of you. This includes how you operate the business, meet performance targets, and follow brand guidelines.
2. How long does the franchise last? Franchise terms vary. Some last five years, others ten. Knowing the term helps you plan your investment and exit strategy.
3. Can I renew the agreement? Renewals are often possible but not guaranteed. You’ll want to check if there are renewal fees, new terms, or performance conditions.
4. What happens if I want to leave early? Exiting early can lead to penalties or restrictions. You should understand your rights and the costs involved if things don’t work out.
5. Is there a cooling-off period? Some franchisors offer a short period where you can cancel after signing. If you're unsure, ask directly or check the agreement.
6. How much is the initial fee and what does it cover? This upfront cost might include training, rights to use the brand, or setup support. Clarify what you’re getting for your money.
7. Are there ongoing fees I need to pay? You may be required to pay monthly or annual fees, often a percentage of turnover. Ask how they’re calculated and what they fund.
8. Do I have to buy products or stock from the franchisor? This can affect your profit margins. Some agreements require you to use approved suppliers or buy directly from the franchisor.
9. Am I restricted to a certain area or territory? Territorial rights define where you can trade. Make sure the area is clearly defined and protected from other franchisees.
10. What happens if the franchisor opens another branch near mine? You need to know if your area is exclusive or not. Otherwise, you could be competing with other branches of the same brand.
11. Will I get help choosing a location? Some franchisors offer site selection services. If not, you’ll need to handle it yourself or hire someone with local knowledge.
12. Do I need to sign a lease myself or will the franchisor do it? Leases come with legal and financial responsibilities. Find out who holds the lease and what happens if you want to leave.
13. Who pays for fitting out the premises? Costs for signage, equipment, and décor can add up. Ask if these are included in the initial fee or an extra cost.
14. What support will I receive before I launch? Training, marketing, and business planning support are often provided upfront. Clarify what's included and for how long.
15. Will someone help me train staff? Ask if the franchisor provides training materials or runs induction sessions. Well-trained staff are crucial from day one.
16. What ongoing support is available after I open? This might include phone support, visits from head office, or group meetings. Know how involved the franchisor will be.
17. How much control do I have over how the business runs? Some franchisors give you more freedom than others. Ask what decisions yours are and which are dictated by the brand.
18. Can I set my own prices? In many franchises, pricing is fixed or guided. If your market has different costs or expectations, this may become a concern.
19. Am I allowed to offer extra services or products? You might have ideas to increase income, but franchisors often limit this. Ask about flexibility for local adaptations.
20. Can I run another business at the same time? Some agreements ban you from running other ventures. Be clear about any restrictions on your time or business activity.
21. How are marketing costs shared between us? You may be asked to contribute to national or regional marketing. Understand how much you’ll pay and how those funds are used.
22. Will I have to contribute to a national advertising fund? If so, check if you get a say in how it's spent. It’s your money, so you’ll want to know it supports your location too.
23. Do I get any help with local marketing? You’ll likely be expected to handle local promotion. Ask what materials, guidance, or budgets are offered to support this.
24. Am I allowed to use social media for promotion? Some franchisors manage all digital channels. Others allow local accounts. Either way, know the rules before launching anything.
25. What happens if I breach the agreement? Mistakes happen. You need to know what the franchisor can do if you break the rules, and how much notice you’ll get.
26. Will I have to give personal guarantees? If the business fails, a personal guarantee could put your own assets at risk. Always ask and seek legal advice on this.
27. What insurance do I need? Cover may include public liability, employee insurance, and business interruption. Some franchisors insist on specific providers.
28. Do I have to set up a limited company? Ask whether the franchise can be operated as a sole trader or if it must be a limited company with a separate bank account.
29. Can I own more than one franchise? Some agreements limit this. Others actively encourage multi-unit ownership. Ask what’s possible from the start.
30. How is performance reviewed? Regular performance checks are common. Understand what’s measured, how often, and what happens if you fall behind.
31. What happens if I don’t meet sales targets? Falling short may trigger penalties or affect your ability to renew. Ask if there’s any flexibility or support available.
32. Will I be able to sell my franchise later? You’ll want a clean exit if things change. Make sure the agreement allows you to sell and explains the process clearly.
33. Does the franchisor have to approve the buyer? Most do. They want to protect the brand. Ask what criteria apply and whether any fees apply during a resale.
34. Do I have to pay a fee if I sell my franchise? This could be a percentage of the sale price or a flat fee. Ask early so there are no surprises later.
35. What happens if the franchisor is sold? Ownership changes can affect support, pricing, or rules. Check whether you can exit if the business changes hands.
36. Can the franchisor end the agreement without cause? This can leave you with a business but no brand. Make sure termination clauses are fair and balanced.
37. What are my rights if the franchisor breaks their promises? You may have limited legal remedies. Ask what happens if support falls short or they fail to deliver what’s agreed.
38. Will I get a copy of the operations manual before I sign? This manual is the blueprint for running the business. Some franchisors allow access before signing, others don’t.
39. What kind of legal checks should I carry out? Always have the agreement reviewed by a solicitor. Ask about checks on the franchisor’s trading history and financials.
40. Is the franchisor registered with any trade bodies? Membership in associations like the British Franchise Association shows a commitment to certain standards.
41. How long has the franchisor been in business? A well-established brand may carry less risk. Ask about their track record, growth, and experience in the sector.
42. How many other franchisees are there? This gives you a sense of the brand’s scale. Also check how many have left in the past few years, and why.
43. Can I speak to other franchisees before I sign? Speaking with current or former franchisees can give honest insight that sales materials won’t provide.
44. What are the biggest risks in this type of business? Every business has risks. Ask for transparency so you can assess how they match your goals and risk appetite.
45. How long does it take to break even? The answer varies by sector and location. Ask for example figures and compare them with your financial expectations.
46. Will I get help with financial forecasting? A good franchisor should provide templates or guidance. Ask if they offer support with business plans or cash flow forecasts.
47. Do I need to submit regular reports to the franchisor? Reporting helps the franchisor support you — but it also adds admin. Understand what you’ll need to send and how often.
48. Will I have access to software or business systems? Ask if any tools are provided and whether you must pay extra. Also check if they offer training on how to use them.
49. Who owns the customer data? In some cases, the franchisor controls all client data. This affects marketing, relationships, and your ability to sell later.
50. Can I get out of the agreement if the business fails? This is one of the hardest questions. Make sure you understand exit clauses and whether there's personal liability involved.
What To Do with These Questions
Don’t ask all 50 questions in one go. That only leads to vague answers and rushed conversations.
Take your time. Ask a few during each meeting. If something sounds rehearsed or unclear, ask for more detail.
Write everything down. If it’s not in the agreement, it doesn’t count, no matter what’s been said.
Get legal advice from someone who works in franchising. They’ll spot things you might miss.
Speak to at least 10 current franchisees. Ask them the same questions. Then compare their answers with what the franchisor told you.
If the franchisor avoids your questions or pressures, you to sign quickly, walk away.
Good franchisors don’t mind hard questions. They know careful research leads to better outcomes for both sides.
Take the time you need. This decision affects your money, your time, and your future.
Interested in Working Together?
Franchise agreements can be complex, but getting the right advice shouldn’t be. We work with individuals and businesses across the UK and internationally who want to make informed decisions before signing. Whether you're reviewing your first franchise deal or looking to expand your portfolio, we’ll give you clear legal advice you can act on.
Book a consultation to speak with a member of our legal team. We’ll walk you through the terms, highlight any concerns, and help you move forward with confidence.
You may also download a checklist of key questions to take with you and use during your conversations with the franchisor.
Ready to get started? Book your consultation