Buying a Franchise: Interview Current and Former Franchisees

A sales presentation shows how a brand wants to be seen. Conversations with franchisees reveal how the relationship works day to day. Before buying a franchise, carry out structured reference checks: speak to current franchisees and, where possible, former franchisees. Other outlet owners’ experiences can help you identify important questions that do not appear in the brochure, without treating any single experience as representative of the whole network.

1. Choose interviewees beyond those recommended to you

Ask the franchisor to introduce you to several franchisees who are willing to be interviewed. But do not stop at the sales team’s hand-picked list. Find other outlets through visits or publicly available business information, then approach their owners politely.

Build a comparison group whose circumstances are relevant to your plans:

• New franchisees, to understand the set-up process and initial adjustment period.
• Long-established franchisees, to learn how the working relationship develops.
• Owners of outlets in similar locations, to make their experiences easier to compare with your plans.
• Former franchisees, to understand why the relationship ended and what they learnt.

Do not assume that a closed outlet must have failed or had a dispute with the franchisor. Closure may reflect changes in the owner’s needs, local conditions or other factors. Ask why it closed rather than guessing.

If the franchisor cannot share contact details for privacy reasons, ask them to forward your interview invitation. A franchisee declining an interview is not evidence of a problem either. However, if every conversation must be attended by the sales team, note that this limits the independence of the information you receive.

2. Ask about specific events, not general satisfaction

Asking “Is this a good brand?” usually produces an answer that is too broad. Instead, ask about specific events: when they happened, who was involved and how they were resolved. The aim is not to seek out complaints, but to understand patterns in the working relationship.

Use the same core questions with each interviewee:

• Before joining, what did you understand differently from the reality once your outlet was operating?
• What was the most recent operational decision you found difficult to implement, and how did you raise your concerns?
• When a problem arose, who actually made the decisions, and what follow-up took place?
• Which policy change had the greatest impact on your outlet’s daily routine? How was it communicated?
• What do you wish you had asked before signing the agreement?
• If you were making the choice again, what would need to be different for you to join?

For former franchisees, also ask when they began considering leaving, whether their reasons were personal or related to the franchise relationship, and whether they discussed the issues with the franchisor.

Ask for concrete examples, but do not press interviewees to share trade secrets, customer data or documents subject to confidentiality obligations. Ask permission before recording. If they are only willing to speak anonymously, respect that boundary and do not promise confidentiality you cannot maintain.

3. Distinguish personal experiences from patterns that need checking

After the interviews, create a simple table recording each theme, the interviewee’s account, when the events occurred, the available evidence and follow-up questions. Separate first-hand facts from opinions or accounts passed on by others.

For example, “communication is poor” is a judgement. “We received the revised procedure after its implementation date” describes an event that can be checked. Ask whether it happened once or repeatedly, and whether improvements have since been made.

Pay attention to differences in context too. Franchisees who joined at different times may operate under different versions of the agreement or different working arrangements. A multi-unit owner’s experience may not be directly relevant to someone buying their first outlet.

The same complaint from several independent sources warrants further investigation, but does not automatically prove a breach. Equally, consistent praise without concrete examples is not a sufficient basis for a decision.

Present the themes from your findings to the franchisor neutrally. For example: “What is your current procedure for notifying franchisees of operational changes, and could I see an example of a notification?” Avoid sharing identities or personal quotations without the interviewee’s consent. Judge the quality of the response by the explanations and documents provided, not simply by how reassuring someone appears in a meeting.

4. Use the interviews to inform a written decision

Indonesia has specific franchise legislation: Government Regulation No. 35 of 2024 on Franchising, which replaced Government Regulation No. 42 of 2007. It requires the franchise offering prospectus to be provided to prospective franchisees at least 14 calendar days before the agreement is signed.

Use the pre-signing review period to compare franchisees’ accounts with the written offer. Interviews are an additional check, not a substitute for the prospectus or a review of the agreement. The requirement to provide a prospectus does not mean that every franchisee is obliged to accept your interview request.

Classify your findings into three decision categories: acceptable, requiring written clarification, or not yet suitable to proceed. If the franchisor’s answers contain important promises, ask for them to be recorded in the appropriate documents and reviewed by a legal adviser before signing.

Practical next step: choose interviewees with different experiences, ask consistent questions, then compare patterns in their answers with the documents. Postpone your decision if important issues remain unresolved; do not let trust alone replace proper checks.