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What questions should I be asking franchise systems?

Investing in a franchise is a major decision. Not every franchise will be right for every individual. Here are a few questions to ask franchisors when investigating if they are right for you:

  1. Are you a member of the Canadian Franchise Association (CFA)?
  2. How many years has the franchisor been operating? How many units do they have overall?
  3. How does the franchisor choose franchisees? How are qualifications reviewed?
  4. What makes the franchisor’s product or service unique?
  5. What kind of support and advice, including advertising, marketing and promotional assistance, does the franchisor provide franchisees?
  6. Does the franchisor choose the location or does the franchisee?
  7. Will you be provided with a disclosure document? Does it comply with provincial franchise laws or CFA’s minimum disclosure requirements?
  8. How much is the initial franchise fee?
  9. What is the anticipated period of time between start-up and profitability?
  10. What are the future plans of the franchise?

A more comprehensive list of questions you should ask franchisors can be found in the CFA Info Kit or here.





The opinions or viewpoints expressed herein do not necessarily reflect those of the Canadian Franchise Association (CFA). Where materials and content were prepared by persons and/or entities other than the CFA, the said other persons and/or entities are solely responsible for their content. The information provided herein is intended only as general information that may or may not reflect the most current developments. The mention of particular companies or individuals does not represent an endorsement by the CFA. Information on legal matters should not be construed as legal advice. Although professionals may prepare these materials or be quoted in them, this information should not be used as a substitute for professional services. If legal or other professional advice is required, the services of a professional should be sought.