Questions to ask before signing a franchise agreement

So, you’ve explored the pros and cons of going solo vs joining a franchise, looked at what different HR franchises offer, and dug into what those franchise fees actually cover. If you’ve been following our April series on Why HR franchising, you’re probably feeling a bit more informed – and hopefully excited – about the potential of joining an established HR franchise.

But before you get to the stage of signing on the dotted line, there’s one more crucial step: asking the right questions. A franchise agreement is a significant commitment, and it’s essential you understand exactly what you’re signing up for and how it will support your business goals.

Here are the key questions every HR professional should be asking before joining any HR franchise.

What are the expectations on both sides?

A franchise relationship is just that – a relationship. And like any good partnership, it should be built on mutual understanding and clear expectations.

Ask what’s expected of you in terms of:

  • Minimum hours or financial targets
  • Use of branding and marketing materials
  • Attendance at events or training sessions
  • Reporting or admin requirements

Equally, be clear on what you can expect from the franchisor. This might include ongoing support, marketing resources, business development help, or regular training opportunities.

How does the support structure work?

Support is often one of the most significant advantages of joining a franchise rather than setting up alone. But not all support structures are created equal.

Find out:

  • Who will be your main point of contact for support?
  • Is support personalised or generalised?
  • What kind of support is available in the first few months vs longer term?
  • Are there opportunities for mentoring or peer connection?

In a high-quality HR franchise, support shouldn’t just be about answering the occasional email. It should feel like a genuine community and professional network that’s invested in your success.

What does training actually look like?

Most HR franchises will mention training, but the content, delivery, and value can vary widely.

You’ll want to ask:

  • How long does the training last?
  • Is it self-guided, live, or a mix?
  • What topics are covered – technical HR knowledge, business development, marketing, systems?
  • Are there different stages of training, or just a one-off induction?

Look for a franchise that treats training as an ongoing investment, not just a tick-box exercise. As a senior HR professional, you’re bringing a lot to the table already – but learning how to run and grow your own consultancy is a whole new skill set.

Can I speak to existing consultants?

This is a big one. Any credible franchisor should be happy to let you speak to existing franchisees. It’s the best way to get a feel for what life really looks like inside the franchise.

Ask the franchisor:

  • Can I contact a few existing consultants for an informal chat?
  • Are there people at different stages – just launched, 1–2 years in, and longer term?
  • Can I speak to someone in a similar region or life stage?

Talking to others who have already taken the leap is invaluable. You’ll get honest insights into the day-to-day experience, the highs and lows, and whether the promises made in the franchise brochure are actually lived out.

What are the financial implications and commitments?

You’ve hopefully already read our recent post on ‘Understanding franchise fees and what you get in return, but now’s the time to drill into the details.

Be clear about:

  • Initial franchise fees and what they include
  • Ongoing monthly or annual fees
  • Any percentage-based royalties or income-sharing
  • Hidden costs like tech systems, insurance, or CPD

Also ask about the franchisor’s expectations around how long you’ll stay in the network and what happens if you want to exit. Are there notice periods, financial penalties, or restrictions on setting up independently?

This isn’t just about costs – it’s about transparency, sustainability, and whether the model makes sense for you over time.

How much autonomy will I have?

If you’re coming from a senior HR background, chances are you’re used to making decisions, leading teams, and shaping strategy. So, it’s important to understand how much autonomy you’ll have in a franchise.

Check:

  • Can you set your own prices or service offerings?
  • Are you free to target specific sectors or client types?
  • Are there any geographical restrictions?
  • Can you build a team or expand in the future?

A good HR franchise will offer a balance of freedom and support – giving you room to build your own business within a framework that helps you succeed.

What happens if things don’t go to plan?

No one likes to think about things going wrong, but it’s wise to know your options.

Ask questions like:

  • What support is available if I’m struggling to get clients or need to pause the business?
  • What are the termination clauses in the franchise agreement?
  • Can I sell my franchise business later on?
  • Are there any post-exit restrictions?

These questions can feel awkward, but they’re vital. A good franchisor won’t be rattled by them – they’ll be ready with open, honest answers that show they’re in it for the long haul with you.

Do the values feel like a good fit?

Finally, don’t overlook the feel of the franchise. Beyond the services and support, is this a business you actually want to be part of? Do the values align with how you like to work? Does it feel collaborative, professional, supportive?

Chatting to head office and existing consultants should give you a strong sense of the culture. Trust your instincts here – joining a franchise is a professional decision, but it’s also personal.

Tying it all together

Throughout our April series, we’ve explored the many reasons an HR franchise can be a smart move – whether you’re pivoting from an in-house role, stepping out of consultancy into something more structured, or just looking for a more flexible, supported way of working.

This final piece is about empowerment. Asking the right questions doesn’t just protect you – it helps you step into your new business with clarity, confidence, and realistic expectations. That’s the best foundation for success.

If you’re considering taking the next step, download our prospectus or get in touch – we’d love to hear from you and help you explore whether face2faceHR could be the right fit for you.