The most valuable hour in franchise due diligence is often the hour you spend speaking with franchisees.
Not at a discovery day. Not during a polished sales presentation. Not while reviewing a brochure.
A candid conversation with an owner who has already invested time, capital, and effort can reveal how the franchise actually operates. You can learn what the franchisor delivers, what the business demands, and whether the opportunity supports your lifestyle goals.
Most buyers waste this opportunity.
They ask, “Are you happy with the franchise?” The owner gives a polite answer, the buyer thanks them, and the call ends without producing useful insight.
If you are learning how to choose a franchise, validation calls should be structured, direct, and wide-ranging. The goal is not to find a perfect franchise. The goal is to determine whether the franchise is a sound capital deployment decision and a transferable business asset, rather than a job with a brand name attached.
Why Franchisee Validation Matters More Than the Sales Process
The FDD is essential. It explains the franchisor’s legal history, fees, obligations, financial disclosures, system growth, and franchisee contacts.
But the FDD cannot fully explain what it feels like to operate the business on a Tuesday morning.
A brochure will highlight the opportunity. A sales presentation will emphasize the model. Discovery day will show you the best version of the corporate culture.
Franchisees can tell you what happens after the excitement fades.
They can help you understand:
- Whether the actual investment matched the original assumptions
- How long the ramp-up really took
- How many hours owners work
- Whether training and support are useful
- How difficult staffing can be
- Whether the franchisor listens when problems arise
- Whether owners would make the same decision again
The Federal Trade Commission’s Consumer Guide to Buying a Franchise recommends speaking with current and former franchisees. That is not a formality. It is one of the best ways to test the franchisor’s claims against operating reality.
Where to Find Franchisees
Start with Item 20 of the FDD.
Item 20 includes system growth and turnover information, along with contact details for current franchisees and franchisees who have left the system during the required reporting period. Use the list to build your own call group. Do not rely only on the references supplied by the franchisor.
Try to speak with a mix of:
- Newer owners
- Experienced owners
- Multi-unit owners
- Owners in markets similar to yours
- Franchisees who have closed, sold, transferred, or left the system
You can also ask whether the system has an independent franchisee association or franchise advisory council. The FDD should provide information about relevant associations.
Local owner Facebook groups and industry communities may offer additional perspective, but treat those comments as leads rather than proof. Verify important claims through multiple conversations and the FDD.
The 10 Questions That Reveal the Truth
1. How long did it take you to reach the revenue and profit you were shown before you signed?
This question tests whether the sales process matched the written disclosure.
Do not ask only whether the owner is profitable. Ask how long it took, what assumptions were involved, and whether the timeline applied to an owner-operated or manager-run model.
If financial performance information was presented, compare the answer with Item 19. Any financial performance representation should be properly disclosed there.
You can follow up with:
- What had to go right for you to reach that point?
- What took longer than expected?
- Would the timeline have changed if you had hired a manager from the beginning?
2. What has been more expensive than you expected?
This question often reveals costs that were technically disclosed but easy to underestimate.
Listen for comments about:
- Build-out
- Technology
- Staffing
- Training travel
- Local marketing
- Maintenance
- Supplier requirements
- Additional working capital
You are not looking for a franchise with no unexpected expenses. Every business has surprises. You are looking for whether the owner felt prepared and whether the franchisor communicated clearly.
3. How many hours a week are you actually working in the business?
This is one of the most important lifestyle-fit questions.
A franchise described as semi-absentee may still require significant owner involvement during hiring, training, staffing shortages, local marketing, or operational problems.
Ask what the owner does personally and what a manager or staff handles. Then compare the answer with your own goals.
If you want to build an asset that can operate without your constant presence, the staffing and management model must support that objective.
4. Would you buy this franchise again, at today’s costs?
This question is more useful than asking whether the owner is happy.
The phrase “at today’s costs” matters. It forces the owner to consider current fees, labor conditions, supplier pricing, competition, and the value of the franchisor’s support.
If the answer is yes, ask why.
If the answer is no, do not argue or rush to explain the franchisor’s position. Ask:
- What changed?
- Was the issue with the business model, the franchisor, the market, or your own expectations?
- What would need to improve before you would recommend it?
5. What does the franchisor do well, and what do they not do that you wish they did?
This question creates room for balanced feedback.
A credible owner should be able to identify strengths and weaknesses. Be cautious when every answer sounds promotional or when the owner refuses to discuss any shortcomings.
Ask for examples.
“Support is good” does not tell you enough. Ask what support looks like, how quickly the franchisor responds, and whether the help solves the problem or simply directs the owner back to the operations manual.
6. How many owners in your area have sold, closed, or transferred in the last two years?
This is a direct way to investigate turnover.
The owner may not know every detail, but they may know whether several operators have left nearby. Compare what you hear with Item 20’s system charts.
A closure or transfer is not automatically a warning sign. Owners retire, relocate, change priorities, or sell successful businesses.
The pattern matters.
If multiple owners in the same market closed, sold quickly, or transferred after struggling, investigate further.
7. How much working capital did you really need beyond the initial investment?
Franchisors provide estimates in Item 7, but real-world needs can vary based on market conditions, staffing, opening delays, and the time required to build a customer base.
Ask:
- How long did the ramp-up period last?
- Did construction or permitting delays affect cash needs?
- Did you need additional funds for payroll or marketing?
- What expenses were hardest to predict?
Never treat one owner’s experience as a guaranteed forecast. Use the answers to stress-test your plan with an accountant or financial advisor.
8. What is your biggest staffing challenge, and how did you solve it?
Staffing can determine whether a franchise becomes a scalable asset or an owner-dependent job.
Ask about hiring, turnover, training, wage pressure, scheduling, and manager development. Then ask what the owner personally does when a key employee leaves.
You want to understand whether the system provides useful recruiting tools and training, or whether each owner is left to solve labor problems alone.
9. What would you do differently if you were starting over?
This is an excellent question because it invites reflection instead of a simple positive or negative verdict.
The answer may reveal:
- A better site-selection process
- More conservative working-capital planning
- A different hiring approach
- More owner involvement during the opening
- A different territory
- A clearer understanding of the franchisor’s restrictions
Ask the owner to be specific. General advice is less valuable than a concrete example.
10. Would you be willing to talk to me again after I speak with a few other owners?
A “no” is not automatically proof that something is wrong. The owner may be busy or uncomfortable with follow-up calls.
Still, an immediate refusal can be a red flag, especially if the conversation was guarded, unusually scripted, or cut short whenever you asked about challenges.
A willing owner does not need to endorse the franchise. They should be comfortable helping you evaluate it fairly.
How to Run the Call
Keep the conversation professional and respectful. Ask permission before discussing sensitive financial information. Explain that you are conducting independent due diligence and want candid feedback, not a sales pitch.
Use these principles:
- Ask open-ended questions
- Let silence do the work
- Avoid interrupting
- Ask for examples
- Take notes
- Do not argue with the owner’s answers
- Separate facts from opinions
- Compare answers across multiple owners
You are not trying to convince the franchisee that your decision is correct. You are trying to understand their experience.
Use the Pattern Recognition Rule
One owner’s complaint is an anecdote.
Three owners describing the same problem is a pattern.
Look for repeated answers about:
- Actual owner hours
- Staffing difficulty
- Franchisor responsiveness
- Technology costs
- Supplier pricing
- Marketing effectiveness
- Ramp-up time
- Territory concerns
- Resale or transfer activity
Positive patterns matter too. If several owners independently describe strong training, responsive field support, and a realistic operating model, that information deserves weight.
The goal is not to count complaints mechanically. It is to understand whether the same issue appears across markets, ownership types, and stages of maturity.
Treat Restricted Validation as a Serious Warning
A franchisor may organize reference calls, and that can be helpful. But it should not be the only source of information.
If a franchisor discourages you from contacting franchisees listed in Item 20, refuses to provide reasonable access to current or former owners, or insists that all communication go through corporate, slow down.
A transparent franchisor should understand why independent validation matters.
You still need to protect confidential information and respect franchisee time. But reasonable access to owners is part of responsible due diligence. If the system cannot tolerate honest questions before you invest, consider how it may respond after you sign.
How a Franchise Consultant Can Help
A franchise consultant can help you organize the validation process, identify missing questions, compare feedback across brands, and separate a legitimate concern from a poor fit for your goals.
Gregory K. Mohr has 15 years of experience in restaurants and franchising. He has received multiple Franchise Consultant of the Year awards and is the author of the Wall Street Journal bestselling franchise book, Real Freedom.
Greg’s approach is practical and transparent. The objective is not to pressure you into choosing a franchise. It is to help you determine whether the model fits your skills, investment level, lifestyle goals, and long-term asset-building plans.
You can also review Franchise Maven’s franchise due diligence resources, FDD analysis guidance, and client testimonials.
Frequently Asked Questions
How many franchisees should I interview?
There is no universal number, but one or two calls are rarely enough. Aim for a broad mix of current and former franchisees, including owners at different stages and in markets similar to yours.
Should I only speak with successful franchisees?
No. Former owners and struggling owners may provide some of the most valuable information. Ask why they left, what they expected, and what they would do differently.
Can franchisees share financial information?
They may choose to share general information or ranges. Respect their boundaries. Your objective is to understand timelines, cost categories, owner involvement, and operating realities, not to demand private records.
What if every franchisee gives positive answers?
Positive feedback is useful, but unusually uniform answers deserve additional questions. Ask for specific examples, challenges, and changes they would make. Real owners usually have both positive and negative observations.
Should I rely on franchisee calls instead of the FDD?
No. Use both. The FDD provides formal disclosure, while franchisees provide operating context. Have an experienced franchise attorney and qualified financial professional review the FDD before signing.
The Bottom Line
A franchisee validation call is not a box to check before discovery day. It may be the highest-value hour in your entire due diligence process.
Ask better questions. Listen carefully. Compare repeated answers. Pay attention to what owners avoid discussing.
The right franchise should support the creation of a transferable, scalable asset. It should not simply give you a new job with more obligations and less flexibility.
If you are exploring the best franchises to buy and want an honest second perspective, book a free discovery call with Gregory Mohr. It is a low-pressure conversation focused on your goals, your questions, and whether franchise ownership is the right fit.
This article is for educational purposes only and is not legal, accounting, investment, or financial advice. Review the current FDD with independent franchise counsel and a qualified CPA before signing an agreement or paying money to a franchisor.