Buying a franchise: how to get reliable franchisee references

A brand presentation shows how the relationship is supposed to work. Talking to someone who already runs an outlet helps you discover how it works in practice. When joining a franchise network, do not treat references as a final reassurance before signing. Make them a separate part of your due diligence, with questions prepared in advance, a varied range of interviewees and a written assessment. The aim is not to secure a recommendation at any cost, but to uncover the gap between promises and everyday experience.

1. Do not rely solely on contacts selected by head office

Ask the franchisor to arrange conversations with several operators. Explain that you want to hear about a range of experiences, not just the most successful outlet. Head office selecting references does not necessarily mean manipulation, but it can naturally favour positive stories.

For a useful comparison, look in particular for:

• a new franchisee with recent experience of opening an outlet;
• a long-standing operator who has experienced changes to the rules;
• the owner of an outlet similar in size and type to the one you are planning;
• someone who runs a single outlet, rather than only a large franchise partner with their own team;
• a former franchisee, if they are willing to discuss their experience.

You can find other outlets through the brand’s public directory. Be open about being a prospective franchisee and arrange a convenient time to speak. Do not pose as a customer to obtain information that is not publicly available. A refusal to speak is not, in itself, a warning sign: the operator may be busy or bound by confidentiality obligations.

2. Ask about specific events, not overall impressions

Asking “Are you happy with the franchise?” usually tells you less than requesting a concrete example. Prepare the same core questions for everyone so that you can compare their answers. Where possible, hold the conversation without a head office representative present; the franchisee may find it easier to speak openly.

For example, you could ask:

• What surprised you during the first few months compared with your original expectations?
• Which task did you end up having to handle yourself, despite expecting help?
• How did head office handle the most recent operational problem you raised?
• When did an operating procedure last change, and how long did it take to implement?
• Which skills were you missing when you joined, and how did you acquire them?
• What would you now want explained before signing the agreement?

For each significant answer, ask when the event happened and whether it was a one-off or a recurring experience. An outlet that opened several years ago may have started under different conditions. Also distinguish between first-hand experience and accounts of what happened to other members of the network.

3. Distinguish brand-wide problems from an individual outlet’s circumstances

Neither an enthusiastic nor a negative reference is a verdict in itself. Results may be influenced by the owner’s experience, how much time they spend on site, the size of the team or how long the outlet has been operating. Record some brief context for each conversation without collecting unnecessary personal information.

If someone says administration takes up too much time, find out which tasks they mean. If another operator does not report the same burden, they may have their own accountant or shift manager. Different answers do not necessarily mean that one person is misrepresenting the situation.

Give greater weight to specific experiences that recur across several independent conversations. Repeated problems with introducing a new system, for example, deserve an explanation from head office. However, do not dismiss an isolated complaint: it may highlight a situation that is particularly important to your plans.

Ask former franchisees why they ended the relationship, too. Leaving for personal reasons tells you something different from leaving after a long-running dispute over how the system operates.

4. Understand Czech rules and the limits of references

The Czech Republic has no specific franchising law and no compulsory registration of franchise agreements. A franchise agreement is generally entered into as an unnamed contract under Section 1746(2) of Act No. 89/2012 Coll., the Civil Code. Depending on the nature of the relationship, other general legislation also applies, such as competition and trade licensing law.

Czech law does not impose a specific obligation on franchisors to provide a standardised pre-contractual disclosure document or a list of franchisees to contact. However, the Civil Code’s general rules on honest dealing and pre-contractual information duties do apply. The absence of specific legislation therefore does not mean that false information can be given during negotiations without consequences.

References are no substitute for a legal review of the agreement. Support that head office voluntarily provides to one franchisee may not be something you are contractually entitled to receive. Respect confidentiality as well: do not ask anyone to breach a confidentiality obligation or share another party’s agreement or non-public financial statements. Obtain consent before recording a conversation.

5. Turn the answers into evidence for your decision

After the conversations, create a simple table recording each claim, the number of independent confirmations, the circumstances and a question for head office. Distinguish between substantiated experience, personal opinion and unverified information. Do not attribute sensitive comments to named individuals without their permission.

Present any discrepancies to the franchisor objectively and ask them to explain the current procedure. If an answer involves a commitment that matters to your decision, have a lawyer incorporate it into the agreement rather than relying on another outlet’s experience.

Practical takeaway: Before signing, compare several different experiences and resolve any significant discrepancies. A good reference is not simply praise for the brand: it gives you a concrete picture of the work you will actually be doing within its network.