Buying a Franchise: Talking to Existing Franchisees

A brand may look convincing on paper yet still be a poor fit for you in day-to-day practice. Talking to existing franchisees helps you spot that gap before you buy. These conversations reveal how collaboration, workload and business independence work in reality. The aim is not to collect as many positive endorsements as possible, but to assess a range of experiences systematically.

1. Choose whom to speak to carefully

Ask the franchisor’s head office for contacts at several franchise businesses and explain your aim: you want to understand everyday life within the franchise network. A selection provided by head office is a useful starting point, but it will not necessarily give you a balanced picture. Particularly successful businesses, or those with close ties to head office, may have different experiences from typical outlets.

Try to gather a range of perspectives:

• New franchisees: They will clearly remember the transition from the selection process to actually running the business.
• Long-standing franchisees: They can assess how reliably the relationship works over time.
• Comparable businesses: The local area, business size and customer base should resemble those you have in mind.
• Franchisees who have faced difficult periods: They can explain how the network handles staff shortages, weak demand or disputes.

Supplement the contacts you are given with your own polite enquiries to businesses whose contact details are publicly available. Arrange a time outside peak trading hours and explain that you are not asking for trade secrets. A refusal to speak is not, in itself, a warning sign: business owners have limited time.

For contacts introduced by head office, also ask whether they have a particular role, such as running a training outlet or sitting on a franchisee advisory council. This does not invalidate their views, but it helps you put them in context.

2. Ask about specific situations rather than overall impressions

“Are you happy with the franchise?” rarely provides a sound basis for a decision. Questions about a real event, how it unfolded and its outcome are more revealing. Use the same core set of questions in every conversation so that you can compare the answers later.

Day-to-day work: What does a typical week look like? Which tasks must the owner handle personally? What proved considerably more demanding than expected after opening? Ask specifically about administration, staff management and last-minute absences—not just customer-facing work.

Working together: When did the business last face a problem it could not solve on its own? Who was available to help, how was the response coordinated, and what was actually done? This helps you distinguish friendly communication from effective problem-solving.

Having a say: How do franchisees put forward suggestions for improvement? Are there regular discussion meetings or an advisory council? Ask for an example of feedback from franchise businesses leading to a change.

Personal suitability: What previous experience helped the person you are speaking to? Which skills did they have to develop? Would they join again in the same personal circumstances—and whom would they advise against joining?

Always ask when the experiences took place. Experiences from a network’s early days will not necessarily reflect what a new franchisee can expect today. Equally, a single exceptional dispute can strongly influence someone’s overall judgement.

3. Compare accounts and clarify inconsistencies

After each conversation, make a brief note of the date, the business profile and the most important examples. Keep three things separate: what exactly was reported, how the franchisee views the event, and what conclusions you draw from it.

A simple comparison table is enough. Assess each business against the same categories: workload, personal responsibility, collaboration, opportunities to have a say, and suitability for you. Flag unanswered questions rather than immediately assigning an overall score.

Pay particular attention to recurring patterns. If several franchisees independently describe the same unexpected demands on their time, that deserves more weight than general enthusiasm. Conversely, a single complaint does not establish a systemic problem.

Then discuss significant inconsistencies with head office, without attributing confidential comments to individuals unless you have their permission. For example, you could ask: “Several conversations suggest that owners often have to step in at short notice. What staffing and operational arrangements would you therefore recommend putting in place before joining?”

Repeated evasiveness, pressure to sign quickly or blanket dismissal of critical franchisees are reasons to investigate further. Visiting an outlet can also help you see its processes and working environment for yourself, although a short visit cannot replace longer-term experience.

4. Put franchisees’ accounts in their legal context

Germany has no specific franchise legislation and no national franchise register. Franchise relationships are governed in particular by the general provisions of the German Civil Code (Bürgerliches Gesetzbuch, or BGB), where applicable the German Commercial Code (Handelsgesetzbuch, or HGB), and German and EU competition law.

Pre-contractual duties of care and disclosure arise in particular from sections 311(2) and 241(2) BGB and the principle of good faith under section 242 BGB. Conversations with existing franchisees do not replace these obligations on the franchisor. Nor do positive accounts make an unclear contractual clause binding or legally unobjectionable.

A franchisee advisory council or regular discussion meetings do not automatically create a statutory right to participate in decision-making. If having a say matters to your decision, ask for an explanation of the information, consultation or approval rights that actually exist, and have the relevant contractual provisions reviewed. Industry association codes of ethics are a form of self-regulation, not state franchise legislation.

Treat your conversation notes as confidential. You must not make audio recordings of private conversations without the required consent.

Practical conclusion: Do not base your decision on the friendliest reference. Compare different franchisees’ experiences using the same questions, clarify recurring inconsistencies and assess whether the day-to-day reality they describe suits your skills and personal circumstances.