What happens after you enquire about a Franchise?

What happens after you enquire about a franchise?

What should you expect from the moment you first contact a franchise and say, “I’m interested in your opportunity.”

Buying a franchise can be a path into business ownership. You typically receive training, proven systems, an established brand, and a network of fellow franchisees.

So what happens after you enquire? Most brands follow a similar pathway. It’s a two-way interview: the franchisor is assessing whether you’ll succeed within their system, and you’re assessing whether the franchise fits your goals, lifestyle, and finances. Until you both sign an agreement, you’re not committed.

New business or existing?

If you’re buying an existing franchise business, you may first deal with a business broker or the current owner. In New Zealand there are restrictions on who can legally facilitate the sale of a business (covered by the Real Estate Agents Act 2008). A Sale and Purchase Agreement commonly includes a condition that the buyer must be approved by the franchisor. Once you’ve agreed price and terms with the vendor, the franchisor’s interview and approval process usually begins.

If you’re looking at a new (Greenfields) opportunity, you’ll deal directly with the franchisor from the outset.

Prepare and research

Before you enquire, get clear on what you want: hours, location, lifestyle, how hands-on you’ll be, how much you can invest, and what skills you bring. Then do basic homework on the brand: read the website, experience the product or service if you can, and keep good notes if you’re comparing multiple franchises.

Line up professional support early. Talk with your bank and engage a franchise-experienced lawyer and accountant.

First contact matters

The interview starts from your first interaction. Some franchisors use an online form; others prefer phone calls. Present professionally, respond promptly, and follow any steps you’re given. Being able to follow a process is “Franchising 101”, and many franchisors will notice if you don’t.

The initial conversation

If the franchisor sees potential, you’ll usually have a call or meeting with a recruitment or franchise development person. Expect questions about where you want to operate, your experience, why you’re interested, how much you can invest, how you’ll fund it, and how involved you’ll be day-to-day (including whether you’ll have a partner).

Confidentiality and application

If you both want to continue, you’ll often be asked to sign a Confidentiality Agreement. This is standard: the franchisor will share commercially sensitive information, and you may share personal and financial details.

Many systems then ask you to complete a formal Application. Fill it out carefully and honestly, complete information helps the franchisor assess your suitability and what support you’ll need. From here, you may have further interviews by video or in person, and you might be asked to travel to the franchisor’s office for more detailed discussions.

Deeper discovery

As the process progresses, you’ll likely meet additional members of the franchisor team and may be invited to speak with existing franchisees. Some franchisors may also want to meet your partner or family if they’ll be involved in the business.

Use these conversations to ask practical questions about training, territory, fees, marketing, staffing, daily operations, and performance expectations. In return, expect the franchisor to explore your business capability, especially if the role involves managing people, budgets, or a busy site. You may also be asked personal questions that relate to your capacity to run a business (for example, family support, past financial difficulty, or long periods off work). Answer openly, surprises later can derail trust.

Trial and documentation

Some franchises include a “trial day” or observation period so you can experience the work first-hand. If offered, take it, it’s one of the best ways to confirm the franchise is right for you.

At this stage, documentation becomes more formal. In well-established systems it is increasingly common to pay a deposit before receiving the Disclosure Document, draft Franchise Agreement, and related information. Make sure you understand the terms of any deposit (including whether it’s refundable) and take legal advice before committing to payments.

Once you receive the paperwork, your lawyer and accountant should review it with you. Expect background checks before final approval, which may include credit and Police checks and confirmation you’re eligible to live and work in New Zealand.

Signing and starting

If everything checks out, you’ll arrange finance, sign the Franchise Agreement, and pay the required initial fees. Then comes the practical setup and training. It can feel like a lot, but your franchisor should have a structured process and ongoing support, use it.

Finally, if you decide not to proceed at any point before signing, communicate clearly. It’s fine to change your mind; it’s not fine to “ghost” people. Franchising is built on long-term relationships and collaboration within a system. Ask questions early, take expert advice, and choose the franchise that fits you best.

The above is an abridged version article, first published in Franchise New Zealand Media, Summer 2026 and can be accessed HERE.