What do fast food franchise owners wish they knew before buying?

Ask current owners what surprised them in their first years. Each is easier to handle when you have asked about it early. The list below turns the common surprises into questions you can put to current owners and the franchisor, before you are committed to a lease or an agreement.

Hours and staffing

Ask how many shifts the owner is expected to work, whether the brand’s operating hours leave room for a manager, and how the schedule is covered. Ask owners how many hours they personally cover, and what happens when a manager quits. Ask how often staff leave and how the store recruits and trains. The article on what a franchise owner does day to day gives a realistic picture of the routine.

Control over the store

Franchisors often set promotions, menu items, suppliers and sometimes pricing. That protects the brand and can leave you with a discount that squeezes your margin. Ask how promotions are decided, whether owners are consulted and who pays for them. Then read what the agreement says about remodels, because a required refresh can arrive at an awkward time.

How to test each one

• Call owners with the most and the least successful stores, not only those the franchisor suggests.
• Ask for the remodel and renewal terms in writing and have your lawyer explain them.
• Ask your accountant to model a quiet month with your real labour and fee costs.
• Visit stores on different days and talk with staff about the schedule.