Franchising sounds like a dream on paper, right? You get a ready-made business model, a recognized brand, and a supposed “shortcut” to entrepreneurship. But here’s the thing: that dream can turn sideways real fast if you don’t ask the right questions before putting your name on that contract.
I’ve seen folks rush in, lured by the promise of support and stability, only to realize later that they bought themselves a job with strings. You want to avoid that. You want to walk with eyes wide open. Especially if you’re looking into a singapore franchise, where regulations, fees, and expectations may look a little different than what you’d see elsewhere. FLA Singapore has some great local insights, but let’s break it down more practically here.
So if you’re standing at the edge of the franchise world, pen in hand, pause. And go through these questions. Like, go through them.
1. What Are the Total Upfront and Ongoing Costs?
The flashy franchise fee is just the start. You might also be on the hook for equipment, inventory, insurance, software licenses, marketing contributions, and royalty fees. Ask for a full cost breakdown, and don’t let them gloss over anything. A legit franchisor should have a disclosure document (or equivalent) that details all this.
And if they tell you it’s all included in one nice little bundle? Be extra cautious.
2. How Long Has the Franchisor Been Operating?
Not all franchises have the battle scars to prove they’ve weathered storms. A brand that’s only been franchising for a year or two may not have ironed out its kinks yet. That’s not always a deal-breaker, but you should know what you’re signing up for. Ask about how many franchises have opened and how many have closed in the last 5 years.
3. What Kind of Support Will I Get?
Initial training is great, but what about after the grand opening? Ongoing support matters more than a shiny onboarding packet. Ask whether they offer help with hiring, marketing, tech, inventory, or crisis management. And don’t just take their word for it—ask franchisees already in the system.
4. What Restrictions Will I Face as a Franchisee?
Can you set your prices? Choose your suppliers? Run local promos? A lot of people don’t realize how tightly controlled their operations will be until they’re stuck in the day-to-day. Know what you’re giving up in terms of autonomy. The answer might surprise you.
5. Can I Speak to Other Franchisees—Unfiltered?
If a franchisor seems cagey about letting you talk to existing owners, that’s a big red flag. Ideally, you should speak with a mix of high-performing, average, and struggling franchisees. Ask about how realistic the financial projections were. What the support is really like. Whether they’d sign again.
6. What’s the Term and Renewal Policy?
Some franchise agreements lock you in for 5, 10, or even 20 years. That’s a long time to commit to something that might not be working out. Also, will you have to pay another hefty fee just to renew? Read the fine print here, because it can cost you more than just money down the line.
7. What Happens If I Want to Sell or Exit?
Life changes. What if you want out? Some contracts give the franchisor first refusal rights, limit who you can sell to, or impose transfer fees. You need an exit strategy before you ever sign. Don’t assume you can just walk away or sell when you’re done.
8. How Are Disputes Handled?
Nobody wants to think about lawsuits, but hey, business gets messy. Some agreements require arbitration or specify legal jurisdiction in a country halfway across the world. Make sure you understand how disputes are resolved—and where.
9. Is the Brand Growing for the Right Reasons?
Growth looks great on a pitch deck, but it could mean they’re selling too fast to unprepared franchisees. Ask about territory saturation. Are stores too close to one another? Are franchisees competing? Look for signs that the growth strategy is sustainable.
Also, make sure you’re not opening up shop right next to someone who’s already trying to reach the same market you are. It’s better to ask now than fight for customers later.
10. Are You Personally Ready for This?
Yeah, this one’s a bit soft. But seriously—are you in a place mentally, financially, and time-wise to run a franchise? Because it’s not hands-off. It’s not passive. And if you’re dreaming of sitting back while the money rolls in… wrong game.
Talk to people who’ve done it. Maybe take a short business course or even learn some foundational skills from this resource that can help you communicate more clearly and professionally with partners or vendors. You’d be surprised what skills matter once you’re in the weeds.
Last Thought
Signing a franchise agreement is a serious move. You’re not just buying into a brand—you’re committing to someone else’s system. That can be a brilliant decision, or it can be a slow-burning regret.
So don’t rush it. Take your time. Ask these questions. And maybe a few more. The right franchise should be as eager to answer them as you are to ask.
