Talking to Franchisees Before Buying a Franchise

Talking to someone who runs an outlet under your chosen brand helps you check how the promises in the sales presentation translate into day-to-day reality. It is no substitute for reviewing the agreement or doing your own sums, but it can help you spot discrepancies and assess whether the franchise network is a good fit. There is one condition: the conversation must go beyond asking, ‘Is it worth it?’ You need a range of people to speak to, a consistent set of questions and a way to verify their answers.

1. Choose a range of franchisees, not just recommended outlets

Ask the franchisor to put you in touch with business owners operating in different circumstances. Someone who has recently opened an outlet will remember the challenges of getting started. A long-standing franchisee will be better placed to assess changes in the terms of the relationship. An owner of several outlets will have a different perspective from someone who serves customers personally every day.

Do not base your decision solely on a conversation with the most successful outlet recommended by head office. That outlet may benefit from an exceptional location, the owner’s experience or contractual terms no longer available to new franchisees. A recommendation does not in itself undermine someone’s credibility, but you do need to understand the context.

Plan conversations with people representing:

• a location similar to the one you are considering;
• both short and long relationships with the brand;
• owner-operated and manager-run outlets;
• former franchisees, if you can make contact with them.

Use publicly available business contact details and ask for a convenient time to talk. An unannounced visit may help you observe customer service, but it is not a good opportunity for a detailed interview with the owner. Do not expect anyone to disclose other people’s personal data or confidential information. Establish whether the person receives any benefit for referring new franchisees.

2. Ask about events rather than collecting general opinions

Asking ‘Does head office help?’ will often produce an unhelpful ‘yes’ or ‘no’. A better question is: ‘What was the most recent problem that required help from head office, when did you report it and how was it resolved?’ A specific event helps you distinguish affection for the brand from the quality of the working relationship.

Prepare one set of questions for everyone you speak to. You could start with these:

• What took longer than expected when opening the outlet?
• Which tasks does the owner still have to carry out personally?
• Which expense came as the biggest surprise, and what caused it?
• What happened during the most recent stock shortage or operational problem?
• How does head office respond to concerns?
• What information were you missing before you signed the agreement?
• Would you choose this brand again, and under what conditions?

Follow up each answer by asking when it happened, how significant the problem was and how it was resolved. A one-off incident several years ago may not reflect the relationship today. A recurring difficulty independently reported by several people, however, needs explaining.

Do not ask anyone to disclose trade secrets. If the person cannot share figures, ask about the type of cost, when it arose and whether it had been anticipated. This information can also help you prepare your own questions for head office.

3. Compare the context and separate facts from opinions

Write a short note after each conversation. Record the date, how long the business owner has been part of the network, the type of location and how the outlet is managed. Separate three elements: the description of the event, the interviewee’s assessment and your own conclusion. ‘I received a reply after a week’ is not the same as ‘The support is poor’.

A simple table can help, with columns for the topic, the interviewee’s account, the outlet’s circumstances and a question to follow up. Do not rate the brand by averaging subjective assessments. Instead, look for recurring patterns and exceptions that can be explained.

For example, two owners may have very different views of the workload. One employs an experienced manager; the other draws up the rota and covers for absent staff personally. This difference does not necessarily mean either account is unreliable. It does, however, show why you need to decide how involved you intend to be before buying the franchise.

Treat former franchisees’ accounts in the same way: neither dismiss them automatically nor regard them as conclusive. Ask why the relationship ended, and distinguish a personal dispute from a problem affecting a wider group of outlets. Put any serious allegation to head office for clarification, without spreading unverified accusations.

4. Turn your findings into conditions for proceeding

In Poland, a franchise agreement remains an ‘innominate contract’: a type of contract not specifically defined and regulated in its own right by statute. There is no separate franchise act, no statutory requirement to register such agreements and no specific, generally applicable obligation to provide a disclosure document fourteen days in advance. Measures described in draft legislation should not be treated as law already in force.

The legal basis for the relationship includes the provisions of the Polish Civil Code, notably the principle of freedom of contract under Article 353¹. That freedom is limited by statute, the nature of the legal relationship and the principles of social coexistence. Depending on the issue, rules on competition, intellectual property or data protection may also apply. Voluntary codes of conduct are no substitute for legislation or a review of the agreement.

Another franchisee’s account therefore does not automatically entitle you to identical terms. If you hear about an arrangement that matters to your decision, ask head office to confirm in writing whether it will also apply to you. Important commitments should be reflected in the agreement or its schedules.

Practical takeaway: before signing, draw up a list of discrepancies uncovered during your conversations. For each one, record head office’s response and how you will verify it. If a key issue cannot be clarified, put your decision on hold rather than allowing trust in a single recommendation to take the place of evidence.