Before you sign a franchise agreement in Türkiye, check the brand, the numbers, the contract and the support. A practical due diligence checklist for investors.
Investor due diligence
Short answer: verify the brand’s track record, get a full investment breakdown, speak to existing franchisees, review the agreement with a lawyer, and confirm the support and the location before you pay anything.
A franchise can be one of the safest ways to invest in an operating business, because you buy into a model that already works. But “already works” has to be verified. Here is the checklist we use with investors at 7Grounds before any introduction.
1. The brand
- How long has it operated, and how many units are open today?
- How many units have closed, and why?
- Is the trademark registered, and who owns it?
- What do customers say across several locations, not only the flagship?
2. The numbers
- Total investment: entry fee, fit-out, equipment, first stock, deposits and working capital, broken down line by line.
- Unit performance: revenue and costs of existing branches, including franchised ones.
- Ongoing fees: royalty, marketing contribution, technology fees.
- Payback period: how it was calculated and on which assumptions.
3. Talk to existing franchisees
The single most valuable step. Ask two or three franchisees about real revenue versus projections, the quality of support, supply prices and whether they would invest again.
4. The agreement
Türkiye has no franchise-specific law and no mandatory pre-contract disclosure document, so your protection lives in the agreement. Review with a lawyer: term and renewal, territory and exclusivity, supply obligations, performance targets, transfer and exit rules, and non-compete terms.
Investing in Saudi Arabia instead? The rules differ: under the Saudi Franchise Law the franchisor must provide a disclosure document at least 14 days before signing or any payment, and the agreement must be registered with the Ministry of Commerce.
5. The support
- What training is included for you and your staff?
- Who helps with location selection and opening?
- How is the marketing fund spent and reported?
- Is there an operations contact who visits and audits?
6. The location
A strong brand in a weak location still struggles. Validate footfall, rent-to-revenue ratio and nearby competitors before you sign a lease.
Skip the guesswork
We qualify every brand before we introduce it to an investor. Browse our vetted opportunities or use Investor Match to see which brands fit your budget and sector.
Looking for a franchise that fits your capital? Share your budget, sector and target city, and we will match you with vetted brands, including listings we do not publish.
Get StartedBrowse vetted opportunities →This article is general information, not legal, tax or investment advice. Always review agreements with qualified advisers.
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.
