Think Franchise
Opportunities
Top 50
Industries
Funding
Learn
Match Quiz
About
Talk With Our Team
Talk With Our Team — It’s Free. (No Kidding.)
All checklists
Checklist 5 of 10
Franchisee Validation Calls
The most valuable research you will do — talk to people who are living it.
0 of 38 complete
0%
Download PDF
Open PDF
Reset progress
Setting up your calls
Pulled the complete franchisee contact list from Item 20 of the FDD
Did NOT rely solely on the reference list provided by the franchisor
Selected franchisees across different markets, opening dates, and locations
Targeting a minimum of 12–15 current franchisees for calls
Identified and targeting at least 3–5 FORMER franchisees from Item 20
Including franchisees who opened in the last 2 years AND 5+ year veterans
Including franchisees in markets similar in size and demographics to mine
Including at least one multi-unit operator if the system has them
Prepared a written list of questions before each call
Questions to ask every current franchisee
'Knowing what you know now, would you buy this franchise again? Why or why not?'
'What did your actual investment cost compared to the Item 7 FDD ranges?'
'How long did it take you to reach break-even?'
'How does your actual revenue compare to what you projected before opening?'
'What does the day-to-day support from the franchisor actually look like?'
'How has the franchisor responded when you had a serious operational problem?'
'What do you wish someone had told you before you signed the agreement?'
'What is the hardest part of this business that nobody warned you about?'
'How accurate is the Item 19 financial data compared to your actual experience?'
'Do you feel like the franchisor treats you as a partner or as a revenue source?'
'How has the franchise system changed since you joined — for better or worse?'
'Are you planning to renew when your term expires? Why or why not?'
Questions for former franchisees
'Why did you leave the system?'
'Was your departure voluntary or initiated by the franchisor?'
'What was the franchisor's role in your exit?'
'What would you tell someone considering buying into this system today?'
'Did the business perform as represented during the sales process?'
What to listen for — red & green flags
GREEN FLAG: Enthusiasm and specificity in answers
GREEN FLAG: Candid acknowledgment of both positives and challenges
GREEN FLAG: Consistent financial results across different markets and operators
GREEN FLAG: Support that matches the Item 11 FDD promises
GREEN FLAG: Franchisees who have renewed or plan to renew
RED FLAG: Reluctance to speak candidly or scripted, promotional answers
RED FLAG: Multiple franchisees describing the same unresolved problem
RED FLAG: Support that falls meaningfully short of Item 11 promises
RED FLAG: High turnover or franchisees who chose not to renew
RED FLAG: Vague or inconsistent financial results across markets
Compiled written notes from every call for comparison and pattern review
Identified any patterns — positive or negative — that emerged across multiple calls
Previous
Reviewing the Franchise Disclosure Document (FDD)
Next
Legal Review & Franchise Agreement