Buying a franchise can be a game-changer—but only if you ask the right questions. Many first-time franchisees in India get caught up in the excitement and sign deals without doing deep due diligence.
To protect your investment and future, here are 10 essential questions every smart franchise buyer must ask before signing that dotted line.
❓ 1. What Is the Total Investment Required?
Don’t stop at the franchise fee. Ask about:
- Setup and buildout costs
- Inventory and equipment
- Working capital for 6–12 months
- Marketing launch costs
This gives you a real picture of total capital needed.
❓ 2. What Support Will I Get Before and After Launch?
Ask what kind of training, onboarding, and operational support the franchisor offers:
- Initial training sessions
- Marketing help
- Ongoing performance coaching
- Local territory visits or reviews
❓ 3. What Is My Exclusive Territory?
Clarify if you’re getting a protected area, and how the brand defines “territory.”
Can they open another unit close by? Can you expand later?
❓ 4. What Is the Franchise’s Track Record in India?
Request data or examples of:
- Franchise units that have succeeded or failed
- Locations with similar demographics
- Support provided in tough markets
Don’t settle for just success stories—ask for both sides.
❓ 5. Can I Speak to Existing Franchisees?
This is non-negotiable. Existing franchisees offer the most honest feedback.
Ask them:
- Are you profitable?
- Was the franchisor transparent and helpful?
- Would you invest again?
❓ 6. What Does the Franchise Agreement Actually Say?
Get the agreement reviewed by a franchise lawyer or an experienced franchise coach.
Pay attention to:
- Exit clauses
- Royalty structure
- Brand restrictions
- Renewal terms
❓ 7. How Long Does It Typically Take to Break Even?
Ask for:
- Average time to breakeven
- What the top 25% vs. bottom 25% earn
- Operating expenses and revenue estimates
❓ 8. How Are Marketing Funds Used?
Many brands charge a marketing or brand fund fee. Find out:
- Where the money goes
- Whether it’s used locally or nationally
- What marketing you’re expected to do separately
❓ 9. What Happens If I Want to Exit or Sell?
Franchise agreements often have restrictions on selling or exiting. Know:
- Is there a lock-in period?
- What are the resale terms?
- Are there transfer fees or approval requirements?
❓ 10. What’s the Brand’s Reputation in India?
Check Google reviews, social media, local news coverage, and customer feedback.
A poor brand reputation can hurt your success—even if the business model is strong.
👨🏫 Bonus: Get Expert Help Before You Sign
Don’t make a long-term commitment based on a short conversation.
As a franchise coach, I help investors like you avoid bad deals, uncover hidden risks, and pick the right opportunity.
👉 Book a Free Franchise Strategy Call at iamronak.com before you sign anything. Get clarity and expert insight tailored to your goals.