Franchising
How to Evaluate a Potential F&B Franchise
A practical checklist of questions to ask before committing to any F&B franchise opportunity.
Draft prepared · 2 min read
Editorial draft — not yet reviewed for publication
This general guide is for information only and is not professional, legal or financial advice. Always confirm current requirements with the relevant authorities.
- Legal review recommended before publishing any franchising content.
A franchise can be a sensible way into F&B, but every opportunity deserves careful scrutiny. The questions below apply to any franchisor — including us.
The brand and concept
- How long has the concept been operating, and how many outlets are run by the franchisor itself?
- Does the concept suit the locations you have in mind?
- How dependent is it on trends, versus everyday demand?
Visit the outlets. Eat there at different times. Watch how busy they are and how consistently the food and service are delivered.
The franchisor's own operating experience
A franchisor that runs its own outlets learns from the same problems its partners will face. Ask how the operating procedures, recipes and training were developed and tested.
What support is actually provided
Ask for specifics, in writing:
- What training is provided, for whom, and for how long?
- Is site selection and fit-out support included?
- How are suppliers arranged, and are you required to use them?
- What happens after opening — visits, reviews, menu updates?
Be cautious of support described in general terms only. Anything important should be set out in the agreement.
The full cost picture
Understand every fee — upfront and ongoing — and every cost you are responsible for, including fit-out, equipment, deposits and working capital. Ask how fees are calculated and whether they change over time.
Be wary of any opportunity that promises guaranteed income, quick payback or "passive" returns. F&B outcomes depend on location, execution and market conditions.
Talk to existing franchisees
If the franchisor has existing partners, ask to speak with them. Ask what support they received, what surprised them and whether they would do it again.
The agreement
Review the term, renewal conditions, territory rights, exit and transfer provisions, and obligations at the end of the agreement. Have the agreement reviewed by a lawyer and your financial plan reviewed by an independent adviser before you sign.
How we can help
If you are considering a New Nanyang partnership, our franchise page explains the current status of our programme, and our team is happy to answer these questions directly.