Buy a franchise

Due diligence checklist

Charm is not diligence. Use this list to slow down a fast pitch and put proof on the table.

Meeting

Good franchisors welcome serious questions. Pressure or secrecy when you ask for numbers and references is information in itself.

Brand & system

  • How long has the brand franchised in India, and how many outlets are open vs promised?
  • What is company-owned vs franchised mix?
  • What training is included, for how long, and at whose cost?
  • What ongoing support exists after month three?

Money & unit economics

  • Full investment sheet with line items
  • Royalty base (gross vs net) and marketing fund rules
  • Sample monthly P&Ls from comparable cities
  • Who sets prices and local promotions?

Territory & competition

  • Exact territory definition (pin codes, radius, mall exclusivity)
  • Can the brand sell online into your territory?
  • Can the brand open another outlet nearby?

Legal & exit

  • Term, renewal rights, and renewal fees
  • Termination triggers for both sides
  • Transfer / sale rules and fees
  • Non-compete scope; dispute resolution

Existing franchisees

  • Would they buy again?
  • Did payback match the pitch?
  • Supply delays or surprise costs?
  • Is the franchisor responsive when things go wrong?

Site visits beat slide decks

Spend time in operating outlets at peak and off-peak. Watch staffing, consistency, and customer flow.

Before you pay a franchise fee

Free discovery with Vijay — pressure-test the pitch and your checklist together.

Educational only. Full disclaimer.