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Researching a Franchise

100 Key Questions to Ask Before Buying a Franchise

Carefully consider these questions before investing in your own franchise.




Are You Suited to be a Franchisee?

Financial Considerations

1. Have you and your spouse and knowledgeable family members discussed the idea of buying a franchise?

2. Are you in complete agreement?

3. Do you have the financial resources required to buy a franchise? If not, where are you going to get the capital?

4. Are you and your spouse ready to make the necessary sacrifices in the way of money and time in order to operate a franchise?

5. Will the possible loss of company benefits, including retirement plans, be outweighed by the potential monetary and self-pride  rewards that would come from owning a franchise?

6. Have you made a thorough written balance sheet of your assets and liabilities, as well as liquid cash resources?

7. Will your savings provide you with a cushion for at least one year after you have paid for the franchise, allowing a one year period of time to break even?

8. Do you have additional sources of financing, including friends or relatives who might be able to loan you money in the event that your initial financing proves inadequate?

9. Do you realise that most new businesses, including franchises, generally do not break even for at least one year after opening?

10. Will one of you remain employed at your current occupation while the franchise is in its initial, pre-profit stage?

Personal Considerations

11. Are you and your spouse physically able to handle the emotional and physical strain involved in operating a franchise, caused by long hours and tedious administrative chores?

12. Will your family members, particularly small children, suffer from your absence for several years while you build up your business?

13. Are you prepared to give up some independence of action in exchange for the advantages the franchise offers you?

14. Have you really examined the type of franchise or business you desire and truthfully concluded that you would enjoy running it for several years or until retirement?

15. Have you and your spouse had recent physical examinations?

16. Is the present state of your health and that of your spouse good?

17. Do you and your spouse enjoy working with others?

18. Do you have the ability and experience to work smoothly and profitability with your franchisor, your employees and your customers?

19. Have you asked your friends and relatives for their candid opinions about your emotional, mental and physical suitability for running your own businesses?

20. Do you have a capable, willing heir to take over the business if you were to become disabled?

21. If the franchise is not near your present home, do you realise that it would not be beneficial to sell your home and buy one closer until the new venture is successful?

Other Considerations

22. Do you know an experienced, business-oriented franchise attorney who can evaluate the franchise contract you are considering?

23. Do you know an experienced, business-minded accountant?

24. Have you prepared a business plan for the franchise of your choice?

Business Considerations

25. Do you and your spouse have past experience in business that will qualify you for the particular type of franchise you desire?

26. Is it possible for either you or your spouse to become employed in the type of business you seek to buy before any purchase?

27. Have you conducted independent research on the industry you are contemplating entering?

28. If you have made your choice of franchises, have you researched the background and experience of your prospective franchisor?

29. Have you determined whether the product or service you propose to sell has a market in your prospective territory at the prices you will have to charge?

30. What will the market for your product or service be like five years from now?

31. What competition exists in your prospective territory already?

32. From franchise businesses?

33. From non-franchise businesses?

Checklist for Interviewing Existing Franchisees

Use this questionnaire when trying to investigate franchise opportunities by interviewing existing franchisees.

Financial Factors

34. Are you satisfied with the franchisor?

35. Is your franchise profitable?

36. Have you made the profit you expected to make?

37. Are your actual costs those stated in the offering circular?

38. Is the product or service you sell of good quality?

39. Is delivery of goods from the franchisor adequate?

40. How long did it take to break even?

41. Was the training provided to you by the franchisor adequate?

42. What is your assessment of the training provided?

43. Is your franchisor fair and easy to work with?

44. Does your franchisor listen to your concerns?

45. Have you had any disputes with your franchisor? If so, please specify.

46. If you have had any disputes, were you able to settle them?

47. How was your settlement accomplished?

48. Do you know of any trouble the franchisor has had with other franchisees? If so, what was the nature of the problem?

49. Do you know of any trouble the franchisor has had with the government?

50. Do you know of any trouble the franchisor has had with local authorities?

51. Do you know of any trouble the franchisor has had with competitors?

52. Are you satisfied with the marketing and promotional assistance the franchisor has provided?

53. Have the operations manuals provided by the franchisor helped you?

54. What do you think of the manuals?

55. Are the manuals changed frequently? If so, why?

56. Other comments you would like to make.

Checklist of Information to Secure from a Franchisor

Use this checklist when doing your own investigation and information gathering.

57. Is the franchisor a one-person company?

58. Is the franchisor a corporation with an experienced management that is well trained?

59. Does the franchisor operate a business of the type being franchised?

60. Is the franchisor involved in other business activities?

61. Is the franchisor offering you an exclusive territory for the length of the franchise?

62. Can the franchisor sell a second or third franchise in your market area?

63. Do you have the right of first refusal to adjacent areas?

64. Will the franchisor sublet space to you?

65. Will s/he assist you in finding a location for franchise operation?

66. Must you lease fixtures, signs or equipment from the franchise?
If so, are the prices reasonable?

67. Does the franchisor provide financing? If so, what are the terms?

68. Does the franchisor require any fees – other than those described in the disclosure document – from the franchisee? If so, what are they?

69. Has the franchisor given you information regarding actual, average or forecasted sales?

70. Has the franchisor given you information regarding actual, average or forecasted profits?

71. Has the franchisor given you information regarding actual, average or forecasted earnings?

72. What information have you received?

73. Will the franchisor provide you with the success rates of existing franchisees?

74. Will the franchisor provide you with their names and locations?

75. Are there any restrictions on what items you may sell? If so, what are they?

76. Does your prospective franchisor allow variances in the contracts of some of his/her other franchisees? What is the nature of the variances?

77. In the event you sell your franchise back to your franchisor under the right of first refusal, will you be compensated for the goodwill you have built into the business?

78. Does the franchisor have any registered trademarks, service marks, trade names, logotypes and/or symbols?

79. Are you, as a franchisee, entitled to use them without reservation?

80. Are there restrictions, exceptions or conditions? If so, what are they?

81. Does the franchisor have existing patents and copyrights on equipment you will use or items you will sell?

82. Does the franchisor have endorsement agreement with any public figures for advertising purposes? If so, what are the terms?

83. Has the franchisor investigated you carefully enough to assure himself/herself that you can successfully operate the franchise at a profit both to him/her and to you?

84. Has the franchisor complied with FTC and state disclosure laws? Are there any regulations specific to the industry in which your franchise business will operate? (Include any special licenses or legal restriction on operations set by statutes.)

85. Does the franchisor have a reputation for honesty and fair dealing among the local firms holding his/her franchises?

Other Questions

86. How many years has the firm offering you a franchise been in operation?

87. What is a description of the franchise area offered to you?

88. What is the total investment the franchisor requires from the franchisee?

89. How does the franchisor use the initial franchise fees?

90. What is the extent of the training the franchisor will provide for you?

91. What are your obligations for purchasing or leasing goods or services from the franchisor or other designated sources?

92. What are your obligations in relation to purchasing or leasing goods or services in accordance with the franchisor’s specifications?

93. What are the terms of your agreement regarding termination, modification and renewal conditions of the franchise agreement?

94. Under what circumstances can you terminate the franchise agreement?

95. If you decide to cancel the franchise agreement, what will it cost you?

96. What are the background experience and achievement records of key personnel (their “track records”)?

97. How successful is the franchise operation? (Use credit reports or magazine articles to supplement information the franchisor gives you – visit for info)

98. What is the franchisor’s experience in relation to past litigation or prior bankruptcies?

99. What is the quality of the financial statements the franchisor provides you?

100. Exactly what can the franchisor do for you that you cannot do for yourself?

Editor’s note: This article is excerpted from Franchise Bible from Entrepreneur Press.

Entrepreneur Magazine is South Africa's top read business publication with the highest readership per month according to AMPS. The title has won seven major publishing excellence awards since it's launch in 2006. Entrepreneur Magazine is the "how-to" handbook for growing companies. Find us on Google+ here.

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Researching a Franchise

The Digital Headaches Of A Franchise Marketing Team

Here are my top 5 tools that can help control and regulate franchisees marketing with minimum friction.

JG Bezuidenhout




Franchise marketing teams already know that managing campaigns for a business with multiple locations and/or stores is a time-consuming job.

When it comes to online marketing, many franchisees are frustrated with the mother brands’ national campaign strategy, as it may not suit their immediate needs. This often means they embark down the dangerous route of “rogue” or unapproved campaigns.

This is a huge risk for any brand as there is limited to no control over the message and quality of creative, often resulting in brand CI and best practices not being followed.

Rogue advertising can be totally avoided by a franchises’ marketing team by employing tools that allow them to set up a managed process where franchisees can advertise through. With a managed approval process (preferably automated) it is easier to manage “rouge” content.

Here are my top 5 tools that can help control and regulate franchisees marketing with minimum friction.

1. Create a consistent Facebook content experience whilst still allowing your franchisees to post to their own page

Facebook location pages makes it possible to, as an alternative, allow every store to open a Facebook page, each with different versions of your logo as their profile picture, as well as incomplete profile data or even old or past promotions as their cover image. You as a brand manager can set up each store as a location page on the brand’s main FB page.

The pages can all be linked to the main page and if you change the profile image or cover art, it will automatically update all the other pages. There are also a number of other marketing advantages to this, but most importantly for me was the ability to manage them all from a single interface and clean up all the old and abandoned pages that just confused customers.

2. Manage social media content

Gain is extremely simple to use and connected to all the popular social media platforms such as Facebook, Twitter, LinkedIn etc. As a user, you can create posts or ads and schedule them all from the same window. Once said posts are scheduled, the marketing team can preview the content and approve it for publication or request changes all within a matter of seconds.  Best of all, nothing will get posted without your approval.

3. Free professional looking content in a template

Pablo is an old favourite of mine! It supplies predefined size templates where a user can use free professional stock photos and quickly overlay text. The feature I love most on this tool is the “insert logo” feature, which with the click of a button can overlay a banner or brand element that creates consistent content experiences. Once done, you can export the image and post it to gain for approval. Simple right!

4. Create email alerts for when your brand is found online

Talk Walker alerts is a nifty tool and acts like your personal internet detective who constantly crawls the internet for keywords that you define. I like to use my clients’ brand names and sometimes even my competitors just to keep tabs on their activity. Once set up, you receive daily emails with links to the content in question.

5. Pre-approved marketing creatives and targeting with machine learning optimisation

Lead Gener8or tool can define a bespoke target audience per store and lock advertising geographical areas to prevent any cannibalisation. Once completed, franchisees can execute pre-approved marketing campaigns as and when they wish on any of the integrated channels (SMS, Email, Facebook, Google and Youtube), without any further involvement required from the marketing team.

Powered by big-data machine learning, campaigns are automatically optimised while in flight. Marketing teams can monitor all campaigns in real time. This tool really is a game changer for franchise marketing teams and brand managers.

With these tools correctly implemented into your business, the digital headache of your franchise’s marketing team can subside and focus on what you do best, delivering results!

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Company Posts

Choose A Job You Love, And You Will Never Have To Work A Day In Your Life

Join Col’Cacchio’s 26-year-long love story.





Vital Stats

  • Joining fee: R125 000
  • Monthly management fee: 6% of turnover
  • Monthly marketing fee: 2% of turnover
  • Total investment: approx. R2.5m to R4.2m (turnkey) Size: 140m2 to 350m2
  • Unencumbered cash (before loan): 50% of total investment

(Above figures exclude VAT) 

“Owning your own restaurant is like owning your own future.” – Dominic Dempers, Franchisee Durbanville, Belvedere & Meadowridge Cape Town

We’re looking for passionate franchisees who will love our brand as much as we do.

Why you should join this delicious success story


  • Assistance with site selection & lease negotiation
  • Store design & build
  • Full training provided for management and staff
  • Marketing & operational support
  • Product innovation & menu development
  • Efficiency in all systems
  • Healthy margins.

Related: 300 Business Ideas To Inspire You Into Entrepreneurship


“Our journey started with a single restaurant on the foreshore with the aim to serve the very best pizza around” – Greg Mommsen, Business Development Director

“Watching this brand grow and empowering people has been immensely rewarding. We have staff that have been with us for over 20 years. It’s like a family, we work hard, we laugh, we cry, we celebrate and of course, we eat a lot of pizza.” – Michael Terespolsky, Founder and Managing Director

“Becoming a franchisee is an amazing opportunity to join the family and become part of the Col’Cacchio success story. We’re 100% behind out franchises at every step, making sure that we all continue to learn and flourish” – Greg Mommsen, Business Development Director

“It has been filled with challenges along the way, but all the rewards have made every moment worth it.” – Michael Terespolsky, Founder and Managing Director

Related: Got An Awesome New Business Idea? Here’s What To Do Next

Visit or call Tarryn Godley on 084 800 7264 and let’s get this adventure going.

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Company Posts

Smoothie Franchise Opportunity: Puré Frooty Is A One-Of-A-Kind Smoothie Franchise Business

Looking for the next greatest franchise opportunity? Puré Frooty Smoothie is a highly perfected Australian business model launching in the South African market that doesn’t require extensive shop fitting or a large workforce.

Pure Frooty Smoothie




Vital Stats

Puré Frooty Smoothie is a unique business model to the South African market. A delicious, fruit filled smoothie will be created at the touch of a few buttons.

An Innovative Franchising Concept

This innovation in the healthy smoothie industry is ground breaking for South Africa. The machine is manufactured in Australia by a highly skilled team. It took six years to perfect this business model for the consumer market.

The vision of Puré Frooty Smoothie is to offer convenient on-the-go smoothies for anyone. The experience and quality will always be of the highest standard. We aim to be a staple convenience in malls, schools, office parks and hospitals. This is a platform that will allow for self-growth for passionate entrepreneurs.

Our mission is to create a unique customer experience. We want to satisfy the nutritional needs of customers by providing quality smoothies. Puré Frooty Smoothie will be packed with all the goodness a smoothie should offer.

Related: Why Your Franchise Should Adopt A Shared Value Business Model

The four values we pride ourselves in are:

  1. Convenience
  2. Consistency
  3. Quality
  4. Customer Satisfaction.

Why Consider This Franchising Opportunity


Extensive research into the business model and market

Puré Frooty Smoothie was an idea, researched widely, by people looking to simplify the business process for the consumer and business owner. There was a gap in the market for simplified customer service and a demand for a quicker turnaround time.

Simplified process for setting up a business

For an entrepreneur it can be very overwhelming to start or buy a new or existing business. There are so many crucial decisions that need to be made from the beginning and new concepts to adapt to.

Puré Frooty Smoothie simplifies that drastically:

  • Free-standing machines: The business model revolves around a free-standing vending machine which needs to be visited to refill and maintenance.
  • No shop-fitting required: There is no need for shop fittings or a large work force. All that is required is an inside space for the machine with a power supply.
  • Minimal human resources needed: In terms of a work force, you could either do it yourself or have one person to assist you. There is also a part time involvement where refill station teams can refill and maintain the machine.
  • Cashless business: The business is completely cashless so there are no worries of a note jam, full cash canister or insufficient denomination rand values. More importantly the machines would do a higher turnover than an ordinary vending machine so safety of no cash is important.
  • Easy tracking of stock and performance: A cloud-based system is linked to the point of sale which allows you to monitor your performance and stock from the back-office platform at any given time.
  • Efficient handling of maintenance: With a live point of sale system, the business is linked to a software which monitors the operations of the machine. Should anything malfunction an immediate notification will be sent with a diagnostics report.
  • Human error is eliminated: Everything is done with a computer which leaves little to no room for errors. It is self-order and very user friendly.

Related: SA Fast Food Franchising On The Rise

Why Will Customers Love It

Puré Frooty Smoothie offers a vending machine that can produce a delicious smoothie in forty seconds. An informative touch screen ordering panel which displays all the nutritional information of the smoothie ordered and has the current news and weather.

No time wasted for the consumer. In fact, it’s a learning session disguised as a waiting period. The machine has two wash cycles after every smoothie is made to be freshly prepared for the next smoothie, business hygiene is important.

Consumers live in the fast lane. We are looking for something quick and most times we would like to be healthier. With the hustle and bustle of today’s life every little bit helps. Puré Frooty Smoothie fills that gap in the market.

Interested in Becoming A Franchisee?

Visit our Franchise Info Page for everything you need to know about how to become information a Puré Frooty Smoothie Franchisee owner.

You can also call or write to us:

Phone / 012-942 6360
Email / 

Want to know more about this franchise? Watch the video below for more.



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