Franchise enquiries: questions to ask before paying

Confirm who is offering the franchise

Begin with the legal entity, brand ownership and the representative's authority to make the offer. Ask for the registered business name, official contact details and the territory being offered. Verify those details independently before sending money or sensitive documents.

A CulinaryMix listing is an introduction, not a guarantee of profitability or legal approval. A verified contact or reviewed listing can reduce obvious risk, but it does not replace your own professional checks.

Request the complete cost picture

The advertised franchise fee is only one part of the investment. Ask for a written breakdown of fit-out, equipment, deposits, licences, opening inventory, training, technology, working capital, marketing contributions, royalties and renewal costs.

Clarify which amounts are estimates, which are fixed and which are paid to third parties. Confirm whether quoted prices include applicable taxes and what happens if the location is not approved.

• Initial franchise or brand fee
• Outlet construction, equipment and opening inventory
• Royalty, technology and marketing charges
• Minimum purchasing commitments
• Renewal, transfer, closure and exit costs

Test the operating assumptions

Ask how sales, labour, rent, food cost and break-even examples were prepared. Request the period, location type and assumptions behind every illustration. An example from a mature flagship outlet may not represent a new outlet in another city.

Speak with several current and, where possible, former franchisees chosen independently. Ask about support quality, supply availability, actual opening time, unplanned costs and whether the brand responds when sales are below expectation.

Review territory, supply and support

The agreement should explain exclusivity, delivery areas, online orders, nearby outlets and what happens when the brand changes its format. Understand approved suppliers, alternative sourcing, product shortages and price revision rules.

List the support promised before and after opening: site review, layout, recipes, training, recruitment, launch marketing, audits and ongoing operations. Replace broad promises with written deliverables, dates and responsibilities.

Use qualified advice before commitment

A franchise agreement can create long-term payment, purchasing and operating obligations. Have a qualified local lawyer review the contract and a finance or accounting professional test the business assumptions. Check required licences with the relevant authorities.

Do not pay because a representative says the territory will disappear in a few hours. A responsible opportunity should withstand verification, written questions and professional review.