Franchising: organising site visits for prospective franchisees

Anyone looking to turn an existing business into a franchise network needs to let prospective franchisees see the work involved, not just a sales presentation. Visiting an outlet and speaking to the person running it helps them understand the pace, responsibilities and challenges. For the franchisor, organising these meetings well means allowing candidates to assess the proposition without disrupting day-to-day operations or creating unrealistic expectations.

Define the purpose of the visit and where it fits in the process

The visit should answer a practical question: what does running this business involve every day? It is not a joining ceremony and should not become an opportunity to press for an immediate signature.

Before the meeting, send the candidate a brief agenda covering the location, approximate duration, who will be present, which activities they can observe and time for questions. Ask which aspects they would like to understand, distinguishing operational queries from contractual matters to be discussed with the franchisor.

In Italy, franchising is governed by Law No. 129 of 6 May 2004. Article 4 requires the franchisor to provide the prospective franchisee with a complete copy of the contract and the required annexes at least thirty days before signing, subject to the specific exceptions set out in the law. These include a list of existing franchisees and company-owned outlets.

The visit is an additional way to learn about the business: it does not replace that disclosure or shorten the statutory period. It must also be managed in accordance with the duties of loyalty, fair dealing and good faith referred to in Article 6.

Choose representative outlets and explain their limitations

Showing only the most attractive shop or the best-performing outlet risks giving a partial picture. Choose the location to reflect the candidate’s proposed business: its size, staffing and work organisation, customer base and local trading environment.

If there are several outlets, offer complementary perspectives where possible: a visit during a typical trading period and a discussion of the challenges faced at busier times. There is no need to turn the process into a tour of the entire network; what matters is explaining why the chosen outlet is relevant and which of its characteristics may not apply elsewhere.

For a business preparing to recruit its first franchisees, only a company-owned outlet may be available. Make this explicit. The manager of a company-owned shop is not an independent franchisee: costs, incentives, access to resources and responsibilities may differ.

Prepare a short outlet profile setting out:

• whether it is company-owned or franchised;
• how long it has been operating and the characteristics of its local market;
• how the tasks candidates can observe are organised;
• any services or resources shared with head office.

The profile should help candidates interpret what they see, not present that outlet as a guarantee of future results.

Involve franchisees without scripting their accounts

Agree arrangements with the host franchisee in advance. Set the frequency, timing and format of visits so that welcoming candidates does not continually take time away from running the business.

Provide an outline of topics, not a script of answers. Particularly useful questions include: which activities take the most time? What was difficult at the start? How do you use the support available? Which skills have you needed to develop?

With the host’s consent, also allow time for a direct conversation between the candidate and the franchisee. Critical comments should not be filtered out: they can reveal aspects that a formal presentation misses.

If the host receives a fee or incentive for taking part, it is prudent to disclose this. Also avoid presenting their contribution as an independent assessment if they have a financial interest in the candidate joining the network.

Always distinguish personal experiences from the terms offered by the franchisor. An arrangement granted to one franchisee does not automatically become an entitlement for everyone.

Protect day-to-day operations and obtain verifiable answers

Before the visit, clarify the rules on photography, recording and access to documents. Do not leave customer-identifying data, personnel files, login credentials or confidential commercial information visible. Where procedures or screens need to be demonstrated, use examples without personal data, in accordance with the General Data Protection Regulation and applicable Italian legislation.

The visit should be observational: the candidate should not be used to serve customers or cover for staff. Any hands-on work experience requires separate arrangements and a review of the applicable obligations, including health and safety requirements.

At the end, record any outstanding questions in a brief shared note. For each one, specify who will respond and which documents will support the answer. If financial information comes up, clarify the period it covers, its scope and its limitations: figures from one outlet do not amount to a forecast for the candidate.

Practical tip: before scheduling the next visit, prepare four simple tools: an agenda, an outlet profile, visitor rules and a list of outstanding questions. The aim is not to secure an immediate commitment, but to enable a more informed decision.