Buying a franchise: how to interview other franchisees

Before you buy a franchise, you need to understand how its community works in practice, not just how the concept is presented. Conversations with current and former franchisees can reveal working practices, difficulties in working together and unexpected demands. But a few satisfied references are not enough. A carefully chosen range of interviewees and the same core questions for everyone will give you a stronger basis for choosing a brand.

1. Choose references who offer different perspectives

Ask the franchisor for an overview of its franchisees and the businesses they run. Then choose whom to contact yourself, rather than speaking only to the people put forward as references. The franchisor’s suggestions may be valuable, but they will not necessarily reflect the experiences of the whole network.

Try to include people in different circumstances:

• Someone who has recently opened and clearly remembers the set-up process.
• Someone who has run the business for a long time and experienced changes.
• Someone in a location with a customer base similar to yours.
• Someone with a similarly sized unit and a comparable level of owner involvement in day-to-day operations.
• If possible, someone who used to be a franchisee in the network.

Do not directly compare an owner who runs several units through employed managers with someone who works in the business every day. Differences in how the business is organised may explain more than the brand itself.

The Swedish legal framework: Sweden’s Act (2006:484) on Franchisors’ Duty to Provide Information requires franchisors to provide clear, understandable written information well before an agreement is signed. This must include information about other franchisees in the same franchise system and the scale of their operations. It does not, however, guarantee that anyone will agree to an interview or disclose trade secrets.

Sweden has no comprehensive franchise law governing the entire relationship. Alongside the disclosure legislation, the Swedish Contracts Act and Competition Act are relevant, among other laws. Reference calls therefore complement a review of the agreement; they do not replace it.

2. Ask about events, not general impressions

Arrange a time that suits the business owner and explain that you are considering joining the network. Ask for a private conversation without the franchisor present. Explain how you intend to use your notes, and ask permission before recording the conversation or sharing information that could identify anyone.

Use the same core questions in every conversation. This makes it easier to distinguish recurring patterns from individual experiences:

• What do you wish you had understood before signing?
• What does a typical working week look like for you as an owner?
• Which part of the day-to-day work differs most from what you expected?
• When did you last disagree with the franchisor, and how was it handled?
• Can you describe a suggestion from franchisees that actually led to a change?
• How do franchisees help one another when something goes wrong?
• Would you choose the same franchise again, and under what circumstances?

Follow up with questions such as “What happened next?” and “Was this a one-off or something that happened repeatedly?” A concrete example of how feedback was handled tells you more about the relationship than a description such as “good communication”.

Also ask when the event took place. Experiences under previous management or older working practices may be relevant, but should not automatically be taken as a picture of the current situation.

3. Organise the answers before drawing conclusions

Create a simple summary with columns for the question, the specific event, when it happened, local circumstances and anything that needs checking. Distinguish between what the person has experienced first-hand and what they have heard from others.

An unhappy business owner may describe a genuine problem that affected only one unit. A very satisfied owner may have unusually favourable circumstances. Neither enthusiasm nor criticism alone should determine whether you buy.

Look particularly for recurring patterns. If several independent people say that feedback goes unanswered, that matters more than a single missed phone call. At the same time, ask whether there is an established channel for improvement suggestions, such as regular meetings or a franchisee council. Such a forum does not automatically carry decision-making powers; ask for examples of what it actually does.

Silence is not reliable evidence of problems either. Business owners may be short of time or cautious about sharing sensitive information. If your sample is small or one-sided, the conclusion should be that your evidence is limited, not that the franchise is necessarily good or bad.

4. Let inconsistencies guide your further checks

Raise recurring concerns with the franchisor without revealing who said what. Describe the issue and ask for an explanation: “How are franchisees’ suggestions for improvement recorded and followed up?” is more useful than referring to anonymous dissatisfaction.

If the franchisor says a problem has been resolved, ask what changed and when. Request relevant documentation and, where possible, check how those affected are finding the new way of working.

Finally, distinguish between positive experiences and binding rights. The fact that another franchisee was granted an exception does not mean you will have the same option. Any commitments central to your decision need to be clearly set out in your own agreement, with help from a lawyer experienced in franchising.

Practical takeaway: Choose your own references, ask comparable questions and check recurring patterns. Do not simply buy into the story of a supportive community — investigate how it works when day-to-day business gets difficult.