Buying a franchise: how to assess franchisees’ experiences

A brand presentation shows how a franchise is supposed to work. A conversation with a franchisee reveals what an ordinary working day looks like when the franchisor’s sales team is not there. Before joining a franchise network, explore the experiences of people already operating under the same business model. The aim is not to find a brand that attracts no complaints, but to understand whether the actual role of the owner suits you and how everyday difficulties are resolved.

1. Choose people who offer different perspectives

Ask the franchisor to put you in touch with current franchisees who are willing to talk. Do not stop at a single recommendation or a conversation arranged during a sales meeting. Arrange a separate appointment in advance, without a brand representative present, to give the franchisee more scope to speak openly.

It is useful to cover a range of situations:

• A newer franchisee will have the clearest memory of the gap between expectations and the first few months of trading.
• A more experienced franchisee can describe how consistent the relationship with the franchisor has been over time.
• A franchisee in a comparable location can help you understand conditions similar to those you may face, such as seasonality or lower local demand.
• A former franchisee, if available and willing to talk, can explain why the business model no longer suited them.

Do not assume that an outlet operating under the same brand is a franchise. It may be owned by the franchisor, in which case its manager’s experience will differ from that of an independent franchisee. Also check whether the person recommended to you is involved in selling new franchises or has an interest in your joining the network.

If the brand is only just entering Croatia, conversations with franchisees in other countries are still valuable. However, identify which aspects depend on local conditions: staff availability, customer habits, language and the way local support is organised. A successful experience in another market will not automatically translate to your location.

2. Ask about a specific working week, not just satisfaction

The question ‘Are you satisfied?’ usually produces an answer that is too general. Instead, ask the franchisee to describe their most recent typical working week. How much time did they spend on site? Which tasks did they have to handle themselves? What could they delegate to employees?

Questions about the owner’s role are particularly useful when comparing brands:

• What surprised you most after opening?
• Which part of the business takes up more time than you expected?
• Can you be away from the outlet, and under what conditions?
• What previous experience is most helpful for an owner?
• Knowing what you know now, what would you investigate differently before joining?

Next, ask for a real example of a difficulty they faced. This might involve a staff shortage, a customer complaint or a technical problem. Ask what happened, whom the franchisee contacted and how the situation was resolved. That sequence reveals more than a statement that communication is ‘excellent’ or ‘poor’.

Do not ask for employees’ personal details, customer data or confidential business materials. To assess day-to-day operations, a description of how a situation was handled, without identifying details, is usually enough. Respecting confidentiality is part of joining a franchise network responsibly.

3. Compare answers and distinguish patterns from exceptions

After each conversation, make a brief note using the same format: operating circumstances, the owner’s involvement, the biggest surprise, an example of a resolved problem and outstanding questions. Record the date, as the experience described may relate to an earlier period or a different organisational structure within the brand.

The same problem reported by several independent sources matters more than one strongly positive or negative impression. If several franchisees say the owner has to cover for absent employees every day, that is important information for a prospective franchisee seeking an investment with limited personal involvement.

On the other hand, one person’s dissatisfaction does not prove that the entire model is unviable. Check for differences in location, the owner’s experience, how long the outlet has been operating and how work is organised. Be equally cautious when interpreting the success of a franchisee who runs several outlets and has a management team you do not plan to have.

Then raise recurring themes with the franchisor, without unnecessarily naming the people you spoke to. Ask for an explanation and a specific example of a change that has helped address the problem. A refusal to allow any conversations with franchisees, or pressure to sign immediately, is a reason for extra caution, but is not in itself proof of wrongdoing.

4. Understand the legal significance of a recommendation in Croatia

Croatia has no specific franchise law and no specific statutory requirement to provide a standardised franchise disclosure document before signing. Nor is there a general requirement to register a franchise in a dedicated franchise register. You should therefore not assume that you have an automatic right to receive contact details for all current and former franchisees.

The contractual relationship is governed by Croatia’s Civil Obligations Act, including its general rules on entering into contracts, good faith and fair dealing, and liability. Depending on the nature of the relationship, the Competition Act, the Trade Mark Act and personal data protection rules may also be relevant. A voluntary code of ethics is no substitute for the law or the individual contract.

Another franchisee’s experience is not a guarantee of your own results, nor does it in itself create a contractual obligation for the franchisor. If your decision rests on an important promise, such as the owner not needing to be present every day, ask for written clarification and have a lawyer check that it is consistent with the draft agreement.

Practical takeaway: speak to a range of franchisees, ask each of them the same core questions and look for recurring patterns. Choose a brand on the basis of the day-to-day reality you are willing and able to take on, rather than the most impressive recommendation.