Czech franchise community wants more data, says Jan Gonda

The Czech franchise community is maturing, according to Jan Gonda, president of the Czech Franchise Association (ČAF): prospective franchisees are better informed, more cautious and increasingly asking for detailed financial evidence. An article published on Horydoly.cz on 30 September 2026 outlines his view of how franchising is changing. The main focus is not simply growth in the number of franchise concepts, but their quality, transparency and ability to demonstrate how the business model works in practice.

From explaining the model to scrutinising results

According to Gonda, the position of franchising in the Czech Republic has changed significantly over the past two decades. Around the turn of the millennium, entrepreneurs still needed an explanation of how franchising worked; today, it is an established business model. Numerous home-grown concepts have also developed alongside international brands.

He says this shift is reflected in the questions prospective franchisees ask. Increasingly, they want to see returns on investment, cost breakdowns and the results of existing outlets. In his experience, decisions are therefore becoming more firmly based on concrete evidence, rather than simply the promise of trading under a familiar name.

Gonda links this shift to pressure on franchisors to become more professional and open. In his assessment, the Czech franchise community continues to grow, but is entering a phase in which the quality of individual concepts will matter more than their number. This is his qualitative assessment of the market’s development: the published article provides neither aggregate statistics nor a growth rate to support it.

The initial investment is only part of the picture

Gonda identifies transparency as a defining feature of a good franchise concept. In his view, prospective franchisees should not settle for information about the initial investment and fees alone. Before signing a contract, they should ask for a realistic financial model, projected revenue, margins, the break-even point and details of working capital requirements.

These are the specific elements of the financial due diligence Gonda recommends. The question is not just how much it costs to acquire a licence or launch the business, but also what assumptions underpin its ongoing operation. He sees requests for evidence of costs and results at existing outlets as one of the clearest signs that prospective franchisees are becoming more cautious.

For readers comparing franchise opportunities, it is important to distinguish between projected results and actual operating experience. Gonda’s recommendations cover both: obtaining a financial model to inform the decision and checking whether the concept has been sufficiently tested. A forecast alone is no substitute for asking about the brand’s track record.

The report does not set universal benchmarks for an acceptable investment, margin or return. Its message is that prospective franchisees need specific figures for the concept they are assessing, rather than a single published number against which to measure every opportunity.

Proven operations and franchisees’ experience

Alongside financial evidence, Gonda stresses the importance of the franchisor’s experience. One of the first questions, he says, should be whether the franchisor runs its own pilot outlet or has sufficient hands-on experience of operating the model it is offering. He considers it a problem if the franchisor has not adequately tested the concept itself.

The second part of due diligence concerns head office support. He recommends speaking to existing franchisees to find out how that support works in practice. In his advice, contact with people already operating within the network is an important complement to information supplied by the franchisor.

Bringing these two perspectives together is particularly important for the franchise community. Head office presents the model and describes the working relationship, while existing franchisees can share their operational experience. Gonda advises prospective franchisees not to skip this part of their preparation and make a decision solely on the basis of the sales presentation.

In his view, transparency therefore means more than a willingness to disclose fees. It also means making supporting information available and allowing prospective franchisees to check whether the promised support is delivered in day-to-day practice.

A well-known brand does not guarantee success

Gonda also highlights a persistent misconception: buying a franchise licence for a well-known brand does not, in itself, ensure success. “That does not mean, however, that franchising is a risk-free business. That is one of the most common misconceptions,” he says in the published interview.

He identifies a reluctance to provide specific data, pressure to sign a contract quickly, promises of guaranteed profits and the absence of a proven pilot operation as warning signs. His advice is to pay attention to these factors when choosing a franchise, rather than waiting until the partnership has begun.

Practical takeaway: Before signing, request a financial model that includes working capital requirements, check the franchisor’s experience and speak to existing franchisees. A familiar name is no substitute for substantiated figures or proven head office support.