How to Make Franchise Validation Calls

How to make a franchise validation call

Your Guide to Franchise Ownership

There is an estimated 775,000 franchise establishments in the U.S., and that number continues to grow. Why? Because the franchise model works! By leveraging a proven system, support and training, you can step right into a franchise business much more seamlessly than starting from scratch. But you have to do your due diligence... and that's where the IFPG Franchise Buyer's Guide comes in.

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Franchise Validation Calls are an Important Part of Due Diligence

An important part of franchise due diligence is validation, which allows you to speak with business owners and ask them questions about their experience with franchise organizations. It will benefit you to speak to several franchisees during this process to see if the franchise is a good fit.

Your franchisor should provide a list of franchise owners who you can call. But how do you decide which franchisees to contact? Ideally, you should reach out to both new franchises and more experienced owners who have a similar background to yours.

Franchise Validation Questions 

Before you perform due diligence, prepare questions in advance. Be on time for the call and make sure to thank the franchisee for their time. Keep in mind that franchise owners are busy.

Reach out via email to set up a time to speak that’s convenient for both of you. When you are on the call, properly introduce yourself and get the conversation started quickly to make the most of the time. 

After your introduction, share your background and what drew you to the business in the first place. Then you can transition to asking about the franchisee’s experience. Avoid focusing too much on money and keep the conversation geared towards the business’ operations. Keep your questions relevant and be mindful of the franchisee’s time.

Ideally, you will have a list of about 25 questions. Here are some examples:

  • Have you had trouble hiring staff?
  • What is a typical day like?
  • What are your favorite and least favorite aspects of the business?
  • How are you supported by the corporate team?
  • Now that you have some questions in mind, which franchisees should you reach out to?


How to Perform Due Diligence

When navigating the franchise validation process, it's important to reach out to successful entrepreneurs so you can see what they are doing correctly. Consider if you're willing to put in the work that comes with franchise ownership. During the call, you can also see if you have a similar character to the franchisee who you're speaking with.

franchise validation

It would also benefit you to speak with franchisees who are in similar demographics to where you'd want to open the business. For example, if you want to open a franchise in a city, it wouldn't benefit you to speak with franchisees who own businesses in the suburbs. That wouldn't give you a sense of what it's like running a business in your desired demographic. 

The age of a business is also important to consider before talking about franchise ownership. Like children, businesses grow through phases. Speaking to franchisees who are in different stages of development would be beneficial because they'll give you a better sense of what running a business is like the longer you do it.

Evaluating Franchise Validation

After you’ve done multiple franchise validation calls, take note of the similarities in the responses you get. You may see patterns which will be a good gauge of how franchise ownership may be for you. 

Also, listen intently to the way franchisees respond to your questions. Are they passionate about the business or do they sound overwhelmed? This should be considered when making your final decision. At the end of the call, thank the franchisee for their time and follow up with a short thank you note.  

It is also important to consider all the feedback you get and not let one bad review stop you from investing. There could be that one person who finds fault in everything and is more than happy to tell you all of their complaints. Get a good idea if the brand is a good fit for you by speaking to multiple franchisees.

While the validation process will help you understand if certain franchise organizations are right for you, it will also help the franchisor understand if you are a good fit. Remember, you are being vetted by the franchisor, as well. Do your best to make a good impression, but most importantly, ask the right questions to ensure that the franchise is ideal for your interests, finances and lifestyle needs.

How to Make Franchise Validation Calls

When it comes to franchise validation calls, it is important to come prepared with specific questions that elicit detailed information that can’t already be found with a simple Google search. Examples include: Has hiring staff been an issue?  What is a typical day like? Is the corporate team responsive and supportive? This will give you a better understanding of what franchise ownership with the brand will be like. To get the most out of the calls, reach out to franchise owners who have a similar background to yours and operate in the business in your desired demographic. With a projected 4.2% increase of economic output in 2023, franchise ownership is a worthwhile investment.

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