Buying a franchise: how to assess franchisees’ experiences

Before buying a franchise, speak to people already operating within your chosen franchise network. Do not simply seek reassurance that the brand is a good choice. Check whether the business model presented matches day-to-day practice and the conditions in which you will be operating. A well-prepared conversation helps distinguish an isolated bad experience from a recurring problem.

1. Do not let the franchisor choose everyone you speak to

Ask the franchisor to arrange conversations with several franchisees. If they direct you only to the most successful outlet, that operator’s perspective will be useful, but not necessarily representative. Ask why they have selected those particular contacts and whether you can suggest others too.

Choose a varied sample: someone who has recently opened an outlet, an experienced franchisee and, if available and willing to talk, a former franchisee. Check whether each person runs their own franchised outlet or an outlet owned by the franchisor. Their operating conditions may differ.

Look particularly for comparable circumstances:

• the size of the town or city and the customer profile;
• the type of outlet and its sales channels;
• how long it has been open and any seasonal demand;
• the owner’s experience before joining the network.

For a brand that has no franchisees in Slovenia yet, contacts abroad can help you assess how the system works. However, their experiences alone do not establish that demand will be the same in Slovenia. Assess differences in purchasing power, customer habits and competition separately.

2. Ask everyone the same core questions

Prepare a short questionnaire before the conversations. This will allow you to compare answers rather than base your decision on the most persuasive person you speak to. Arrange each conversation in advance, choose a quiet time and, where possible, speak without the franchisor present.

Start by asking: “After opening, what differed most from your expectations?” Then ask for a specific example, roughly when it happened and how it was resolved. A general statement that the relationship is excellent or poor tells you very little without context.

Useful follow-up questions include:

• Which assumptions in the initial presentation proved correct, and which did not?
• What would you investigate differently before signing?
• How did the franchisor respond when something went wrong?
• Can franchisees raise concerns openly and receive a meaningful response?
• Knowing what you know now, would you choose the same brand again, and why?

Also ask whether the person receives any benefit for referring a new franchisee. This does not invalidate their experience, but it helps you understand the circumstances behind their recommendation. Record their answers separately from your own conclusions.

3. Use an outlet visit to check the context

Supplement the conversation with a visit to an operating outlet. Visiting as an ordinary customer reveals part of the customer experience, while an arranged visit allows you to ask questions about how the business runs. Do not expect access to back-of-house areas, business records or employee data without permission.

Observe whether the offering is easy to understand, how ordering works and whether the promised customer experience holds up in practice. A single visit is only a snapshot: an empty outlet in mid-afternoon is not proof of poor performance, just as a queue during a special promotion is not proof of sustained success.

After the visit, check what was typical and what was unusual. If the person quotes sales figures, ask which period they cover and whether they include special promotions. Do not confuse turnover with profit, or a personal impression with verified business information.

4. Understand the legal framework for conversations in Slovenia

Slovenia has no specific franchising law, mandatory franchise register or dedicated statutory pre-contractual disclosure document. Do not therefore assume that a special franchise regulation requires the franchisor to automatically provide a list of all current and former franchisees.

Negotiations and the contractual relationship are governed by the Slovenian Obligations Code (Obligacijski zakonik, OZ), including the principle of good faith and fair dealing and the rules on liability during negotiations. A statement by an individual franchisee does not automatically constitute a contractual commitment by the franchisor. Verify important claims directly with the contracting party and consult a lawyer about which should be included in the agreement.

The General Data Protection Regulation (GDPR) and the Slovenian Personal Data Protection Act (ZVOP-2) are relevant when sharing personal contact details and other personal data. A practical solution is for the franchisor to forward your invitation, leaving the franchisee to decide whether to respond. Do not ask anyone to breach confidentiality or disclose customer data.

5. Turn recurring findings into a decision

After the conversations, draw up a table covering claims made in the offer, the experiences of those you spoke to, supporting evidence and outstanding questions. Highlight problems independently reported by several franchisees operating in comparable circumstances. Also check whether these relate to past conditions or the current working relationship.

Give the franchisor an opportunity to provide a factual response. Rather than making an accusation, present a specific discrepancy and ask for an explanation and supporting evidence. An unwillingness to facilitate contact is not, in itself, proof of wrongdoing, but it is a reason for extra caution.

Practical takeaway: before signing, compare several independent accounts, check their context and resolve any significant discrepancies. An enthusiastic recommendation is the starting point for due diligence, not a substitute for it.