Franchise Glossary
Validation Calls
Phone calls or meetings with current and former franchisees to verify the franchisor's claims and learn about the real franchise experience.
Validation calls are one of the most valuable steps in franchise due diligence. Item 20 of the FDD provides contact information for current and former franchisees. By reaching out to these operators, prospective buyers can ask about their actual financial performance, the quality of franchisor support, the accuracy of the FDD's representations, and their overall satisfaction. Talking to both successful and struggling franchisees gives a well-rounded view of the opportunity.
Related Terms