Buying a Franchise in Australia: Interview Franchisees

Before buying a franchise in Australia, speak to people who have already operated within the brand. A sales presentation explains the proposed opportunity; franchisee interviews help you understand how the relationship works in practice. The aim is not to collect endorsements or complaints, but to identify experiences you can test against documents and your own circumstances.

1. Build a balanced contact list

The Australian Competition and Consumer Commission (ACCC) recommends talking to current and former franchisees before committing. Within the franchising community, these conversations can reveal practical details that are difficult to judge from a presentation alone.

Do not rely solely on introductions to the franchisor’s preferred representatives. Use the franchisee contact information in the disclosure document to build a broader list, and ask the franchisor to explain any gaps that affect your enquiries.

Choose people with different perspectives:

• Recent buyers who remember the purchasing and establishment process.
• Established operators who have experienced changes within the network.
• Franchisees running a similar business format in a comparable location.
• Former franchisees who can describe the relationship with hindsight.

There is no magic number of interviews that makes a purchase safe. Seek enough variety to distinguish a recurring experience from an isolated event. A metropolitan operator with several outlets may have little in common with someone buying their first regional business.

2. Ask consistent, experience-based questions

Prepare a short question sheet and use the same core questions in every conversation. This makes answers easier to compare and reduces the chance that an enthusiastic or unhappy interviewee sets the entire agenda.

Start by establishing context: when they joined, the type of outlet they operated and whether they bought an existing business or established a new one. Then ask:

• What did you understand least well before signing?
• Which parts of the buying process matched what you were told?
• What surprised you during the first year?
• When you needed a decision from the franchisor, what happened?
• How are franchisee suggestions considered in practice?
• What would you investigate more carefully if buying again?

Follow broad descriptions with requests for examples. If someone says communication is excellent, ask them to describe a recent situation and how it was handled. If they describe a problem, ask when it occurred and whether the process has since changed.

Ask whether they would buy again, but do not treat that answer as a verdict. Their reasons are more useful than a simple yes or no.

3. Make room for candid, respectful conversations

Arrange a convenient time rather than expecting someone to speak while serving customers. Explain that you are considering the brand and want to understand the everyday experience of operating it.

Where possible, speak without the franchisor present. Ask whether the interviewee has any referral arrangement connected with introducing buyers. Such an arrangement does not automatically invalidate their account, but it provides useful context.

Respect boundaries. Franchisees may be unwilling or unable to share confidential figures, documents or details of a disagreement. Do not encourage them to breach contractual obligations, and do not interpret a refusal as proof that something is wrong.

Take dated notes, distinguishing direct statements from your interpretation. Ask permission before recording a conversation or attributing comments when raising questions with the franchisor. Avoid promising absolute confidentiality if you cannot ensure it.

4. Test patterns against the legal documents

Australia’s mandatory Franchising Code of Conduct regulates relationships within the franchising community. The current Code commenced on 1 April 2025, with some requirements taking effect later. The ACCC oversees compliance. The Australian Consumer Law also prohibits misleading or deceptive conduct.

Franchisee interviews supplement these protections; they do not replace independent advice or contractual checks. A longstanding operator may have different terms from those offered to you. A benefit they receive is not necessarily a right you will acquire.

Create a comparison table with four columns: the issue, what interviewees said, what your documents say and what remains unanswered. Put repeated discrepancies to the franchisor in writing, without unnecessarily identifying individuals.

Ask your solicitor to check whether important assurances are reflected in your proposed agreement. Where an answer affects your budget, ask your accountant what evidence would be needed before relying on it.

5. Decide what still needs resolving

Separate findings into matters that are satisfactorily explained, matters needing evidence and matters that could change your decision. Several similar accounts deserve attention, but repetition alone does not establish every detail as fact.

Practical takeaway: use franchisee interviews to generate better questions, not to outsource your decision. Before committing, resolve material inconsistencies between lived experience, the franchisor’s explanations and the obligations you are being asked to accept.