Do franchise companies earn from healthy units or mainly new entry fees?
Distinguish the franchisor business from individual franchise units and review system revenue, support capacity, franchisee performance, closures, litigation and brand investment.
How are franchisee performance, closures and disputes documented?
Check trademark ownership, franchise and master agreements, manuals, supplier economics, franchisee arrears, marketing funds, territory commitments and the resources required to support the network.
Can the support team serve the current and planned network?
A growing unit count can hide weak franchisee economics, insufficient support, disputes or a franchisor dependent on new entry fees rather than recurring system health.
What happens to franchisees if franchisor ownership changes?
If investing in or joining the system, clarify governance, support ownership, franchisee communication, data, manuals and continuity of the franchisor leadership team.