Ten practical checks that separate a real franchise opportunity from a sales pitch, from the full investment to talking with existing franchisees
For investors
Short answerBefore you sign, check ten things: the brand’s real track record, the full investment and not only the entry fee, the ongoing fees, unit economics you can verify, what existing franchisees say, your territory, the support, the exit terms, the franchisor’s legal standing and who is advising you; a good opportunity passes every one of them
Most franchise mistakes are made before the contract is signed, when excitement is high and questions are few
These are the checks we run at 7Grounds before any opportunity reaches our registered investors
1. The brand’s real track record
Ask how many branches are open today, how many closed in the last three years and why; many openings with many quiet closures tell their own story
2. The full investment, not only the entry fee
Ask for the total: entry fee, fit-out, equipment, first stock, deposits, licences and working capital until the branch breaks even; the entry fee is often the smallest part
3. Ongoing fees
Royalties and marketing fund contributions are usually a share of revenue, not of profit, so model them on a realistic month rather than a good one
4. Unit economics you can verify
Ask for real figures from operating branches: average revenue, rent as a share of revenue, staff cost and margin; projections without operating data are a promise, not evidence
5. Talk to existing franchisees
Ask for the full list and call owners the franchisor did not choose for you, then ask the one question that matters most: would you invest again
6. Territory and protection
Find out whether your area is exclusive, for how long, and what stops the brand from opening another branch next to yours
7. Training and support
Get in writing what happens in the first ninety days: training, opening team, supply chain and launch marketing
8. Exit terms
Check whether you can sell your branch, under which conditions and at what cost; a contract that is easy to enter and hard to leave deserves a second reading
9. Legal standing
Verify the company registration, trademark ownership in your market and any open disputes; a brand that does not own its trademark in your country cannot fully protect your branch
10. Independent advice
Have the contract reviewed by a lawyer who works for you, not for the seller, and confirm the numbers with an accountant
Warning signs
- Guaranteed returns or very short payback promises
- Pressure to pay before you have seen the documents
- Payments requested to personal accounts
- No access to existing franchisees
Every opportunity shown to our registered investors goes through these checks first, and if you are looking at one now, a free initial screening is the right first step
Considering a franchise opportunity
Send us what you have and we will tell you which questions to ask before you pay
Evaluate an opportunity Join the Investor Club →Sources: 7Grounds evaluation method · Investor CharterUpdated October 2026 · This article is general information, not legal, tax or investment advice; verify with official sources and independent advisors before making decisions · 7Grounds does not guarantee returns
7Grounds Team
The 7Grounds team in Istanbul: strategists, designers, marketers and franchise and investor specialists working across Türkiye and the Gulf in Arabic, English and Turkish.
