What questions should I ask a franchisor before signing a franchise agreement?

I am shortlisting food and retail franchises in Karachi and Islamabad. What are the highest-value questions to ask the franchisor and existing franchisees?

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Abdullah Saleem 3 months ago

Focus on money, territory, support, and exit — not the brochure story.

Ask the franchisor
- Total investment to open and months to typical break-even
- Royalty and ad fee calculation
- Territory exclusivity and how conflicts are handled
- Supplier lock-ins and pricing flexibility
- Training, field support, and renewal terms

Ask existing franchisees
- Would you buy again?
- How accurate were sales projections?
- How responsive is support when something breaks?
- Biggest surprise cost in year one?

Write answers down. Vague answers are a red flag.

Related: franchise agreement questions, franchise due diligence, territory protection

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