Buying a franchise: how to learn from other franchisees

Before buying a franchise in Portugal, it is worth getting to know people who already experience the network’s day-to-day reality. A sales presentation introduces the concept; a well-prepared conversation reveals how the relationship between business owners works. Speaking to other franchisees can help you judge whether that community meets your expectations, provided you do not mistake one person’s experience for a guarantee of success.

1. Choose people with different experiences

Ask the franchisor to put you in touch with franchisees, but do not limit your research to outlets presented as examples. It is natural for a brand to want to showcase its best results. As a prospective franchisee, however, you also need to understand journeys that have been less straightforward.

Try to speak to franchisees at different stages: someone who has recently opened, someone with an established operation and, where possible, someone who has left the network. Include outlets with characteristics comparable to those of the business you intend to run, such as location, team size or customer profile.

Comparisons are only useful if you understand the context. A shop in a tourist area may face very different challenges from an outlet in a residential neighbourhood. Note when each business opened, the operator’s previous experience and their day-to-day involvement.

You can contact outlets through publicly available channels, introducing yourself and asking for a brief conversation at a convenient time. Do not pose as a customer to obtain internal information. If someone is unavailable, respect their refusal: on its own, it does not indicate a problem with the network.

2. Prepare questions about specific events

Questions such as ‘Are you satisfied?’ tend to produce answers that are difficult to compare. Instead, ask about incidents, decisions and examples that help you understand how the franchise community works.

Use a consistent set of questions, adapting them to each person’s experience:

• Joining the network: what do you wish you had known before signing?
• The first few months: what was the biggest difference between the initial presentation and day-to-day reality?
• Communication: how do you raise suggestions or difficulties with the franchisor? Can you give a recent example?
• Problem-solving: what happened when a significant unexpected problem arose?
• Participation: are there meetings between franchisees? Do proposals receive a reasoned response?
• Autonomy: which decisions can you make locally, and which require approval?
• Personal assessment: would you join again on the same terms? Why?

Avoid turning the conversation into an audit of the other person’s business. You do not need accounts, customer data or confidential documents to gather useful information. If figures are mentioned, ask what period and circumstances they relate to, rather than treating them as a forecast for your own outlet.

At the end, ask permission to get back in touch if further questions arise. Send a thank-you message and confirm the key points where there is a risk that you may have misunderstood an answer.

3. Cross-check accounts without turning opinions into facts

Organise your notes in a simple table: topic, example given, context and outstanding question. Separate what the person witnessed from what they heard from others and from their own assessment.

A statement such as ‘The brand never listens to anyone’ is a broad opinion. Knowing that a proposal went unanswered despite several follow-ups allows you to ask a specific question. Look for patterns across independent accounts, but also consider alternative explanations: staff changes, regional differences or procedures that have since been corrected.

Praise does not prove that everything works; criticism does not prove that the entire network is failing. Personal accounts complement your review of the documents; they do not replace it.

When you identify a significant discrepancy, give the franchisor an opportunity to explain. You might ask: ‘How is an unanswered request followed up?’ or ‘What procedure has changed to prevent this difficulty?’ Ask for examples or documents that support the explanation.

Do not identify a franchisee or share their statements without permission. If you need to discuss an incident that could identify them, agree in advance what you may disclose. This care protects relationships and encourages frank conversations.

4. Understand the legal limits and resolve outstanding questions

Portugal has no specific law governing franchise agreements, no dedicated register of franchisors and no pre-contractual disclosure document with legally prescribed content. The general rules of the Portuguese Civil Code apply, among others, including freedom of contract and good faith in negotiations and in the performance of the agreement.

Where standard contract terms are involved, Decree-Law No. 446/85, as amended, is also relevant, particularly regarding the communication and explanation of those terms. Other rules may apply depending on the business activity and the content of the agreement.

This framework does not create a general right to interview any franchisee or inspect their accounts. Nor does it allow favourable accounts from franchisees to replace explanations that the franchisor is required to provide. Take any material discrepancies to a lawyer before making commitments.

Practical conclusion: speak to people with different backgrounds, ask consistent questions and record verifiable examples. Before proceeding, turn each important uncertainty into a written question for the franchisor and assess the consistency of the response.