Due Diligence
How to Validate a Franchise: What to Ask Existing Franchisees
One of the most underutilized — and most valuable — steps in buying a franchise is talking to the people who are already running one. These are called "validation calls," and they can reveal things no FDD or sales presentation ever will.
Why Validation Matters
The franchisor will always present their system in the best possible light. Existing franchisees will give you the real story — the good, the bad, and everything in between. Their experience is your most honest data point.
Where to Find Franchisees to Call
Item 20 of the FDD lists all current and former franchisees, including their contact information. Start there. Don't just call the franchisees the franchisor refers you to — cast a wide net.
Questions to Ask
- "Knowing what you know now, would you buy this franchise again?"
- "How long did it take you to break even?"
- "What does your average week look like operationally?"
- "How responsive and supportive is corporate?"
- "What surprised you — positively or negatively?"
- "Are you hitting the numbers in Item 19?"
- "What do the top performers do differently?"
Red Flags to Watch For
Be cautious if franchisees seem reluctant to talk, if the franchisor discourages you from reaching out broadly, or if you hear consistent complaints about a specific issue.
We walk every client through the validation process as part of Step 4 in our 7-step journey. We'll help you know who to call, what to ask, and how to interpret what you hear.
Ready to take the next step?
Speak with a franchise advisor and let's find the right franchise for you.
Speak With a Franchise Advisor