1. What is the risk involved with franchising and how do you (the franchiser) intend to minimize that risk?


2. What happens if I decide I no longer want to operate the franchise? Do you (the franchiser) have a policy that requires me to pay a cancellation fee?


3. Do you have any lawsuits against your franchise? May I see the list of lawsuits?
(Look at reasons sited to see if there is a pattern).


4. What is your franchisee turnover rate? Can I have a list of the franchisees that left?

5. How much money can I potentially earn? - (There are laws prohibiting them from answering this question because profits vary and depend heavily on the franchisee's motivation and determination to succeed. Be careful of the ones who do answer this question.)


6. Do the company-owned stores provide most of the support for the parent company? (Should be a yes to avoid over-dependence on the royalty stream).


7. Is your franchise trademarked? (Should be because its what you are buying with the franchising fee).


8. How long is your franchise-training program? (Don't want it to be too short/long).


9. Can I see some of your company's financial statements?


10. Can I have a list of all the current franchise owners close to my area? (Speak to the owners and discover their level of satisfaction and profitability).