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Help Franchise Finance · Checking the franchise
Help guide · Franchise Finance · Checking the franchise 1 min read

How do I check a franchisor before I invest?

Check the franchisor as carefully as a lender will. Its strength affects your income, your support and how lenders see your application. A practical checklist• Companies House: look up the franchisor's company, its...

In this topic Checking the franchise 6 articles · Franchise Finance

Check the franchisor as carefully as a lender will. Its strength affects your income, your support and how lenders see your application.

A practical checklist

  • Companies House: look up the franchisor's company, its filed accounts, its directors and any charges.
  • Talk to existing franchisees, including ones you find yourself, not only those head office suggests. Ask about income, support and the real total of fees.
  • Ask about franchisees who left, and why.
  • Test the forecast against what franchisees tell you. See Does the franchisor's forecast replace my own business plan?.
  • Check the track record: how long the brand has franchised, and how many units it has.
  • bfa membership: check the bfa's member directory. See Does bfa membership matter to lenders?.
  • Disputes: ask about any legal disputes with franchisees.

Signs to be careful

  • pressure to sign quickly
  • earnings claims with no evidence behind them
  • reluctance to let you speak to franchisees freely
  • an agreement you're told you can't have reviewed

Get the agreement reviewed

Use a franchise-specialist solicitor. See What should I check in a franchise agreement?.

Last reviewed: 8 October 2026

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