Franchise Validation Questions: 40 to Ask Current Owners

Franchise validation questions are the questions you ask current and former franchise owners to test what the franchisor has told you. Validation is the single most useful step in franchise due diligence because owners have lived the business. Below are 40 questions, grouped by topic, that cover money, support, operations, and regrets. Use them with owners you find in FDD Item 20.

The disclosure document tells you what the franchisor must say. Owners tell you what it is like to run the business on a Tuesday in February. When the two stories match, you can move forward with more confidence. When they do not, you have found something important.

How to set up validation calls

Who to call

Item 20 of the franchise disclosure document lists every current franchisee and every owner who left the system in the last fiscal year, with contact information. Use it to build your own list:

• 3 to 5 owners in markets similar to yours (similar population, income, or competition)
• 2 to 3 owners who opened in the last two years
• 2 to 3 owners with five or more years in the system
• 1 to 2 multi-unit owners, if you plan to grow
• 2 to 4 former owners

The franchisor will likely suggest a few owners. Call them, but do not stop there.

How to ask

Email or text first to request 20 to 30 minutes. Owners are busy, and many receive several calls a month from prospects. Introduce yourself, say you are considering the brand, and offer a few time options. Respect their time and thank them afterward.

During the call, ask open questions and let silence work. Take notes. After each call, rate the owner’s overall sentiment and write down any specific facts you can verify.

What not to do

Do not ask an owner to predict your results. Do not treat a single great or terrible call as the truth. Do not share what other owners told you in confidence.

Money and performance (questions 1 to 10)

Owners are not required to share their numbers, and the FTC Franchise Rule limits what franchisors themselves can say outside Item 19. Owners can speak about their own experience, though. Ask respectfully and accept a “no.”

1. How long did it take you to reach break-even?
2. How did your actual startup costs compare with the Item 7 estimate?
3. How much working capital did you need before the business supported itself?
4. When did you start paying yourself, and was that later than you planned?
5. Are you comfortable sharing a range for your annual revenue or how it compares with the Item 19 figures?
6. What are your three biggest expenses after royalties?
7. Have any fees increased since you signed, such as technology or marketing fees?
8. Are required supplies and products priced competitively?
9. What surprised you most about the economics of the business?
10. If you financed the business, how did debt payments affect your first two years?

Use the answers to stress-test your model. Our guide on how much does a franchise cost shows how to combine Item 7 with owner feedback, and our article on franchise startup costs covers the expenses owners most often underestimate.

Training and support (questions 11 to 18)

11. How well did initial training prepare you for opening day?
12. What did training leave out that you had to learn on your own?
13. How often do you hear from your field support contact, and how useful are those visits?
14. When you have an urgent problem, how quickly does the franchisor respond?
15. How good are the technology systems, such as point of sale, scheduling, and CRM?
16. Does the brand fund produce marketing that brings in customers in your area?
17. Has support changed since you joined, especially after any change in ownership or leadership?
18. Is there an independent franchisee association, and how does the franchisor work with it?

Operations and daily life (questions 19 to 26)

19. What does a typical week look like for you, in hours and tasks?
20. How many hours did you work in your first year compared with now?
21. How hard is it to hire and keep staff in your market?
22. What role do you play now: operator, manager, or something else?
23. Could this business run with a general manager, and how long did it take you to get there, if you did?
24. What part of the job do you enjoy least?
25. How seasonal is the business?
26. How has the operations manual held up when you faced real problems?

Questions 22 and 23 matter most if you are planning a manager-run model. Owners will tell you quickly whether “semi-absentee” is realistic in their market.

Territory and growth (questions 27 to 31)

27. Is your territory large enough to support your business?
28. Has the franchisor ever placed another unit or sold services in a way that cut into your area?
29. How does the franchisor handle national accounts or online orders in your territory?
30. Would you buy additional units, and if not, why not?
31. If you have tried to sell or transfer a unit, how did that process go?

The relationship (questions 32 to 36)

32. How would you describe your relationship with the franchisor’s leadership?
33. Do you feel the franchisor listens when owners push back on a decision?
34. Have you had any disputes with the franchisor, and how were they resolved?
35. Has the franchisor enforced the franchise agreement fairly and consistently across owners?
36. How did the franchisor treat owners who struggled?

Regrets and the big picture (questions 37 to 40)

37. Knowing what you know now, would you buy this franchise again?
38. What do you wish you had asked before signing?
39. What kind of person does well in this system, and who struggles?
40. Is there anyone else, current or former, I should talk to?

Question 37 is the one to listen to most carefully. Pay attention to hesitation and qualifiers as much as the answer itself. Question 40 often leads you to the most candid conversations.

Extra questions for former owners

Former owners can tell you things current owners may not. Adjust your approach and add:

• Why did you leave the system?
• Did you sell, close, or have your agreement terminated?
• Did you recover your investment?
• Did you sign a confidentiality agreement when you left? (If they did, respect it.)
• What would have had to be different for you to stay?

Item 20 must disclose if franchisees signed confidentiality clauses in recent years. If it does, some former owners may decline to talk. That is not a reason to skip them, just a reason to call more.

How to interpret answers to your franchise validation questions

After 10 to 15 calls, step back and look for patterns:

Compare what owners say with the franchisor financial statements. If owners describe cuts in support while the franchisor reports thin cash, those facts likely connect.

The FTC’s consumer’s guide to buying a franchise recommends talking with current and former owners for the same reasons outlined here. Share your notes with your franchise attorney, since owner comments sometimes point to contract terms that deserve a closer look.

Your next step

Validation works best when you already know what you want from a business. If your goal is a manager-run model, your questions will focus on hiring and owner hours. If it is income replacement, you will focus on ramp-up and cash flow. Take the free Franchise Genie assessment to see your owner archetype and best-fit industries, then tailor these 40 questions to the owner you plan to be.