What should I ask the seller during a fast food franchise handover?
Ask the seller for supplier order days and par levels, the crew schedule and who is reliable, local promotions and community arrangements, delivery-app tablets and logins, franchisor contacts, and maintenance vendors. Get the answers in writing, since the franchisor’s training will not cover them.
The franchisor trains a new owner on the brand’s systems. It does not teach the local detail that makes this particular restaurant run: which supplier delivers when, who can be counted on, which community groups buy lunch. That knowledge sits with the seller. Ask whether the purchase agreement sets a handover period, and what it covers.
Suppliers, orders and par levels
Ask for the order days, cut-off times and usual quantities for each supplier, and the stock levels the seller keeps on hand. Ask who the sales representatives are and how problems get resolved. A new owner who guesses at ordering tends to run out of key items or throw away the surplus.
The crew and the schedule
Ask for the current schedule, each person’s strengths and the shifts that always need attention. Ask which people open and close without supervision. Introduce yourself to the shift leads during the handover so that they hear about the change from both of you.
Local promotions, apps and community ties
Ask what the seller does locally: school fundraisers, sports team arrangements, nearby workplaces that place regular orders. Get the details of any delivery-app tablets, the logins and the account contacts, and confirm in writing how the accounts will move to you. The page on what you actually own in a franchise may help.
Franchisor contacts and maintenance vendors
List the franchisor’s field consultant, support contacts and any approved vendors the seller uses for repairs, pest control and cleaning. Ask who responds quickly and who does not. Then ask your lawyer to include a handover period and the seller’s cooperation in the agreement.
Related reading
15 pages on the same subject, grouped by topic.
Due diligence
Buying
- GuideFood franchise opportunities in Canada: what franchisors publish
- Expert answerDoes buying a franchise resale require retraining?
- Expert answerWhat is a franchise resale?
- GuideBuying a restaurant in Canada
- Expert answerShould I buy a franchise or an independent business?
- Expert answerIs buying an existing fast food franchise cheaper than opening a new one?
- Expert answerWhat costs come on top of the price when you buy a restaurant?
- Expert answerHow do I compare fast food franchise brands before buying one?
- Expert answerWhy do some fast food franchises cost less to buy into?
- Expert answerWhat should I check before buying a healthy fast food franchise?
Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Canadian Franchise AssociationIndustryInterested in Buying a Franchise?
- 02Business Development Bank of CanadaGovernmentWhat are the steps to buying a business?
- 03Business Development Bank of CanadaGovernmentAfter buying a business, what is the next step?
- 04Canadian Food Inspection AgencyGovernmentFact sheet: Preventive food safety controls
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