25+ categorized questions to ask existing franchise owners during validation calls, plus how to find franchisees, conduct calls, and spot red flags.
You can read every page of the Franchise Disclosure Document, analyze Item 19 financial data, and tour the corporate headquarters — but nothing replaces a candid conversation with someone who is actually living the franchise experience day to day. Validation calls with existing franchise owners are the single most important step you can take before investing.
The FDD tells you what the franchisor wants you to know. Existing franchisees tell you what it is actually like to operate the business: the real startup costs, the actual revenue trajectory, the quality of support, and whether they would do it again knowing what they know now.
Franchise sales teams are skilled at presenting their brand in the best possible light. That is their job. Franchisees who have been operating for two, five, or ten years have no financial incentive to sugarcoat their experience. Most are willing to be honest with prospective buyers because someone did the same for them.
Every FDD includes Item 20, which lists the name, address, and phone number of every current franchisee in the system. The FDD also lists franchisees who left the system in the past fiscal year. Both lists are valuable.
Current franchisees can tell you about the present state of the system. Former franchisees — those who sold, transferred, or chose not to renew — can tell you why they left. If the franchisor discourages you from contacting former franchisees or makes it difficult, treat that as a significant red flag.
Plan to speak with a minimum of 10 to 15 franchisees, and ideally more. The goal is to identify patterns, not just individual experiences. One unhappy franchisee might have a personal issue. Five unhappy franchisees citing the same complaint reveals a systemic problem.
Diversify your calls across:
What was your total investment to open, including everything the FDD did not account for? The Item 7 estimate often understates real costs. Franchisees know the actual number.
How long did it take to break even? The time from opening to consistent monthly profitability is critical for your cash reserve planning.
What does a typical month look like in terms of revenue and expenses? You are looking for a realistic picture, not a best-month anecdote.
Are you making the income you expected when you signed? This question reveals whether pre-sale expectations matched reality.
What are your biggest ongoing expenses beyond royalties and rent? Hidden costs (technology fees, required vendor pricing, marketing co-op shortfalls) add up.
If you had to do it over, would you invest in this franchise again? The single most telling question. Pay close attention to hesitation, qualifiers, and tone — not just the word “yes” or “no.”
How would you rate the initial training program? Was it sufficient to prepare you to operate the business?
What does ongoing support from corporate look like in practice? Some franchisors are highly engaged. Others are absent after you open.
How responsive is your franchise business consultant or field support rep? The person assigned to help you is your primary lifeline. Their quality matters enormously.
Has the franchisor followed through on the promises made during the sales process? Broken promises — especially about marketing, technology, or support — are a common source of franchisee frustration.
How has the franchisor handled system-wide challenges (economic downturns, supply chain issues, competition)? This reveals how the franchisor performs under pressure.
What does a typical day look like for you? This grounds your expectations in reality. Some franchise owners work 30 hours a week. Others work 60+.
How many employees do you have, and what are the biggest staffing challenges? Labor is the number one operational headache in most franchise systems.
What is your role in the business day to day — are you working in it or managing it? This depends on whether you plan to be an owner-operator or a semi-absentee owner.
What surprised you most about running this franchise? The answers to this question are consistently the most insightful comments you will hear.
What is the hardest part of operating this franchise? Every business has pain points. You need to know what they are before you commit.
Have you ever considered selling or closing? If so, why? Even happy franchisees have had tough stretches. Their honesty here is revealing.
What is the biggest mistake you made in your first year? Learning from others’ mistakes is the entire purpose of validation calls.
If you could change one thing about the franchise system, what would it be? Patterns in these answers reveal systemic weaknesses.
Do you feel your territory is adequately protected? Encroachment — the franchisor placing another location too close to yours — is a frequent dispute in franchise systems.
How effective is the national/regional marketing fund? Franchisees contribute to advertising funds (typically 1-3% of revenue). Some get excellent marketing support. Others feel the fund is poorly managed.
What do you spend on local marketing beyond the required fund contributions? This reveals whether the brand’s marketing generates enough awareness or whether you need to supplement significantly.
How would you rate the technology platform (POS, CRM, scheduling, reporting)? Outdated or unreliable technology creates daily operational friction.
Does the franchisor invest in improving systems, or has technology stagnated? Ongoing investment signals a franchisor that is thinking about the long term.
Are there required vendors or purchasing requirements that feel overpriced? Mandated vendor relationships where the franchisor receives rebates can inflate your operating costs.
Knowing everything you know now, would you choose this franchise over other options? Different from “would you do it again” — this asks about comparative value.
What advice would you give someone considering this franchise? Open-ended questions like this often produce the most candid, unscripted responses.
Watch for these warning signs across your calls:
Combine what you learn from validation calls with the data in the FDD and analysis from tools like VetMyFranchise to build a complete picture. No single source of information is sufficient — but validation calls come closest to giving you the ground truth about a franchise system.
validation callsfranchise due diligencequestions to ask franchise ownersItem 20franchisee interviews
Item 20 of the Franchise Disclosure Document lists the name, address, and phone number of every current franchisee in the system, as well as franchisees who left the system in the past year. This is required by the FTC and must be included in every FDD. Use this list to reach out directly.
Aim to speak with a minimum of 10 to 15 franchisees across different geographies, tenure levels, and performance levels. The goal is to identify patterns rather than relying on any single person's experience. More calls always produce better insight.
The most revealing question is "Knowing everything you know now, would you invest in this franchise again?" Pay close attention to hesitation, qualifiers, and tone in their answer. Follow up by asking what they would do differently. These open-ended questions consistently produce the most honest and useful responses.
Some franchisees are busy and may not respond on the first attempt. Be persistent but respectful — try calling at off-peak business hours. If a large percentage of owners refuse to speak with you or seem coached in their responses, that itself is a red flag worth investigating.
Absolutely. Former franchisees listed in Item 20 can provide invaluable insight into why they left, whether by choice or not. They may reveal issues with the franchisor relationship, profitability challenges, or systemic problems that current owners are reluctant to discuss while still part of the system.
This page is part of VetMyFranchise. View all pages: llms.txt · llms-full.txt