Buyer Tools

Due Diligence Scorecard

Before you sign a franchise agreement, you must ask the right questions. Answer seven quick questions to find your buyer profile and readiness score, and get a due diligence checklist tailored to your experience and how you want to work.

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How much commercial and management experience do you have?

This helps us spot where you may need more training and support.

How confident are you with sales and marketing?

Winning customers is a big part of most franchises.

How involved do you want to be day to day?

This sets your buyer profile.

Where would you ideally like to work?

Each setting brings its own costs and questions.

How will you fund your franchise?

This shapes the finance questions to ask and the franchises we suggest.

How much could you invest in total?

We use this to suggest franchises within your budget. Not sure? Pick the last option.

When are you looking to buy?

Your timescale changes what you need to ask first.

Assessment Complete

Your Franchise Fit:

Your Readiness Score

How prepared you are to start buying a franchise, based on your answers.

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Your score is made up of four areas worth up to 25 points each: commercial experience, sales confidence, funding position and the time you have for due diligence. It reflects how prepared you are to buy, not whether a particular franchise is right for you.

Your Due Diligence Checklist

Take this into your franchisor meetings and tick each item off as you go.

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Questions to Ask the Franchisor

Tailored to your answers
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    Core Checks for Every Buyer

    Make these checks before you sign, whatever your profile

      Your Next Steps

      Based on your answers, these tools will help you prepare.

      Validate the Training

      A strong franchisor will have a comprehensive training programme. You must ensure the initial training bridges any gaps in your commercial experience, and that ongoing support is provided as you scale the business.

      Speak to Franchisees

      The most crucial step of due diligence is validating the model with existing network members. Ask the franchisor for a full list of their network and select the individuals you wish to speak with randomly.

      Review the Agreement

      Franchise agreements heavily favour the franchisor. It is imperative that you instruct a BFA-affiliated franchise solicitor to review the contract, highlighting restrictive covenants, renewal clauses, and exit strategies.

      Franchise Due Diligence: A Guide for UK Buyers

      Due diligence is the research you carry out before committing to a franchise. It is your chance to check that the business works the way it has been described, that the franchisor can support you, and that the agreement is fair. Buying a franchise is usually a significant investment, so this stage deserves real time and care.

      How franchising is regulated in the UK

      Unlike the US and Australia, the UK has no franchise-specific legislation, and franchisors are not legally required to give you a disclosure document. Franchise relationships are governed by general contract and business law. Membership of the British Franchise Association (BFA) is voluntary, but BFA members must follow its Code of Ethics, which includes giving prospective franchisees full and accurate information before they sign. Because the legal protection is limited, the checks you make yourself matter even more.

      Start with your own profile

      The right franchise depends on your skills, how involved you want to be day to day, where you want to work and how you plan to fund it. Knowing your buyer profile helps you focus on opportunities that suit you, and ask the questions that matter most for your situation.

      Documents to ask the franchisor for

      • A copy of the franchise agreement, in full, to review with a solicitor.
      • The franchisor's information pack or disclosure document, including all fees.
      • The franchisor's latest financial accounts.
      • A full list of current franchisees, and details of any who have left.
      • An outline of the training programme and ongoing support.
      • Any financial projections, with an explanation of how they were worked out.

      Questions to ask existing franchisees

      • How do your actual sales and costs compare with what you were told at the start?
      • How long did it take you to break even?
      • How good is the training and day-to-day support?
      • Are the marketing and lead generation working in your area?
      • Knowing what you know now, would you buy this franchise again?

      Warning signs to look out for

      • Pressure to sign quickly, or deadlines that feel artificial.
      • Reluctance to share the full franchisee list or the franchise agreement.
      • Earnings claims that are not backed up by real figures from the network.
      • Fees that are unclear or only explained once you ask.
      • A high number of franchisees leaving, or very few long-standing ones.

      Get professional advice

      Have a specialist franchise solicitor review the agreement before you sign, and ask an accountant to look over the financials and your business plan. Their fees are small compared with the cost of committing to the wrong opportunity.

      Buyer Profiles Explained

      Hands-On Owner Operator

      Delivers the service directly to customers and controls daily output.

      Management Franchisee

      Builds and manages a team, running the business at a strategic level.

      Executive Investor

      Owns a mature model run semi-passively under an appointed manager.

      Due Diligence Questions

      Franchise due diligence is the research you carry out before buying a franchise. It covers checking the franchisor's finances and track record, speaking to existing franchisees, reviewing the franchise agreement with a solicitor, and making sure the opportunity suits your skills and goals.

      No. The UK has no franchise-specific legislation, so there is no legal requirement for a disclosure document. However, members of the British Franchise Association must follow its Code of Ethics, which requires them to give prospective franchisees full and accurate information before they sign.

      Speak to the franchisor, a selection of existing franchisees chosen at random from the full network list, and where possible franchisees who have left. You should also take advice from a specialist franchise solicitor and an accountant.

      It is strongly recommended. Franchise agreements tend to favour the franchisor and can include restrictive covenants, renewal conditions and exit terms that are hard to change once signed. A specialist franchise solicitor can explain what you are agreeing to and flag anything unusual.

      Common warning signs include pressure to sign quickly, reluctance to share the franchisee list or agreement, earnings claims without supporting figures, unclear fees, and a high number of franchisees leaving the network.

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