How to interview franchisees before buying a franchise

Talking to people who already run a franchise helps turn sales promises into claims you can check. But a conversation without a plan may yield little more than vague opinions. Before joining a franchise network in Brazil, interview current and former franchisees to check one essential point: whether the support and requirements described by the brand match operators’ day-to-day experience.

1. Use the COF list, not just contacts supplied by the sales team

In Brazil, Law No. 13,966/2019, known as the Franchise Law, requires the franchise disclosure document (Circular de Oferta de Franquia, or COF) to include a complete list of the network’s franchisees, sub-franchisees and sub-franchisors, as well as those who have left in the past 24 months, with their names, addresses and telephone numbers.

This list lets you choose people to speak to beyond the outlets recommended by the sales team. The law also requires the COF to be provided at least ten days before you sign a contract or preliminary agreement, or pay any fee to the franchisor or a business or person connected with it. This is a minimum waiting period, not a requirement to decide on the tenth day.

Choose a range of interviewees that includes:

• Newly opened outlets, to explore set-up and training.
• Longer-established operations, to assess support after opening.
• Businesses with a format and operating conditions similar to those you are considering.
• People who have left the network, to understand any difficulties and how the relationship ended.

Do not treat a recommendation from the sales team as evidence of manipulation, but avoid relying on it exclusively. If contact details are out of date, ask the franchisor for clarification and corrected information in writing.

2. Ask questions that elicit concrete examples

Introduce yourself as a prospective franchisee, explain your purpose and agree on a convenient time. A short, structured interview is likely to be more productive than an unexpected call while someone is serving customers. Respect anyone’s decision not to take part, and do not pressure people to disclose confidential information.

Use the same core questions in every conversation:

Set-up: what expenses arose beyond the initial budget? Did the training prepare the team for opening? Were there any delays, and who had to resolve them?

Support: when the last operational problem arose, how did you request help? How long did it take to get a response? Did the solution work?

Day-to-day operations: which tasks require the owner’s direct involvement? How many staff are needed at peak times? Would the model work with the level of commitment you intend to give it?

Mandatory purchases: are there recurring supply problems? How do delivery charges, minimum orders and delivery times affect cash flow?

Additional costs: were you required to pay for refurbishment, equipment, systems or training after opening? Was this explained in the documents you received?

Replace “Does the franchisor help?” with “Tell me about a recent situation when you needed help.” A concrete example helps distinguish a friendly sales approach from effective support.

3. Speak to former franchisees without assuming why they left

People who have left the network may reveal problems that do not appear in sales presentations, but leaving does not, in itself, demonstrate a failing on the brand’s part. Changes in personal circumstances, local performance and contractual disagreements can lead to different experiences.

Start with open questions: why did you decide to leave? What did you expect when you joined? What was the main difference between your expectations and the reality of running the business? Which document or condition do you wish you had examined more carefully?

Then try to separate three layers:

1. Reported fact: for example, scheduled training did not take place.
2. Interpretation: the interviewee felt the support was inadequate.
3. Context: the period, outlet format and specific circumstances of that operation.

Also ask what worked well. This helps avoid an assessment based entirely on praise or complaints. Do not ask for details covered by confidentiality obligations, or turn allegations into conclusions without checking them.

4. Compare accounts with documents before deciding

Create a spreadsheet with five columns: topic, what the COF or contract says, the interviewee’s account, available evidence and outstanding question. Record the date and context of each conversation. Ask permission before recording or sharing information that identifies someone.

If someone reports an unexpected cost, check whether it appears among the documented investment requirements, fees or obligations. If there is a complaint about support, compare it with the description of what the franchisor actually offers. The law requires information about support, supervision, services and training, among other matters; it does not mean every network must offer the same package.

Pay closer attention to similar problems reported independently, without treating your selection of interviews as representative statistics for the whole network. Put discrepancies to the franchisor in writing and request specific answers. Important promises should be formally and consistently reflected in the documents, with legal review.

Practical takeaway: before signing, choose your own interviewees, use a consistent set of questions and clarify any significant discrepancies. Interviews cannot guarantee success, but they can help you make a decision that relies less on the sales pitch.