Validation calls: what to ask current owners

Validation is the part of evaluation where you talk to current franchisees. The brand's FDD lists them (Item 20 carries current and former owners with contact details), and your coach helps you pick who to call. Plan on several calls, not one.

Who to call

• Owners who opened in the last two years, for what the first year was really like.

• Owners who have been in five years or more, for what the business looks like once it settles.

• At least one owner in a market that resembles yours.

• If Item 20 lists owners who left, call one. Ask why.

What to ask

Keep the questions concrete.

1. What did it actually cost to open, compared with the range in the FDD?

2. How long until the business paid you a salary?

3. How many hours a week do you work in it now, and how many did you work in year one?

4. What does the franchisor do well? What do they do badly?

5. What would you do differently if you were starting today?

6. Would you buy another unit?

7. Is there anything you wish someone had told you before you signed?

What to listen for

Consistent answers across owners matter more than any single glowing or bitter one. If three owners in three markets describe the same problem with supply, staffing or support, believe them.

Item 19 and validation

Some brands publish financial performance representations in Item 19 of the FDD. Owners can tell you whether those figures match their experience. If the brand publishes no Item 19, owners are the only source of financial reality you have, and the calls matter even more.

Log what you hear

Tell your coach what you learned. They record it against your deal so nothing is lost between now and Discovery Day, and they will hear things in your notes that you might not weigh the same way.