Buying a Franchise? 3 Steps to Mastering Franchise Validation

Buying a Franchise? 3 Steps to Mastering Franchise Validation

You would never buy a house without an inspection. You would not accept a job offer without researching the company and your new boss. So why would you invest in a franchise without talking to those who have already walked the path?

That is what makes franchising unique. Unlike starting an independent business, you have direct access to current franchise owners, those running the business you are considering. Their insights are uncensored, real-world perspectives on what it actually takes to succeed in the brand.

This process is called franchise validation, and it is your best opportunity to uncover the truth before making your investment decision.

What is Franchise Validation?

Franchise validation is the process of speaking with current franchisees to gather first-hand insights into:

? Daily operations, challenges, and successes.

? Financial performance (what the franchisor cannot legally disclose).

? Support quality from the franchisor.

? The gap between expectations and reality.

These conversations help you move beyond marketing materials and sales pitches to see the true experience of being a franchise owner.

How I Work with Clients to Prepare for Validation Calls

Many people approach validation calls without a plan. They ask broad, surface-level questions, or worse, let the conversation drift without uncovering real insights.

That is where I come in.

I help my clients structure their validation calls for maximum impact. Instead of randomly calling franchisees and hoping for useful information, I guide them through a step-by-step process to extract the most critical, strategic insights.

Step 1: Start with High-Level Questions

Before diving into financials or operations, we begin with big-picture insights:

?? What was your background before investing in this franchise?

?? Why did you choose this brand over others?

?? How has your experience compared to your expectations?

This helps uncover patterns; what type of franchisee succeeds in the system and whether you share those traits.

Step 2: Focus on the Franchisee’s Specific Experience

Once we understand their general outlook, we drill down into daily operations and challenges:

?? What does a typical day look like for you as an owner?

?? What have been your biggest challenges, and how did you overcome them?

?? How would you rate the franchisor’s support, training, and marketing assistance?

This phase reveals what it actually takes to run the business. It exposes any hidden struggles that franchise sales materials do not mention.

Step 3: Uncover Financial Realities

Financial transparency is why validation calls matter. The franchisor may provide average revenue figures in Item 19 of their Franchise Disclosure Document (FDD), but these are not always detailed or representative of every location. Only franchisees can share actual financial performance, costs, and profitability:

?? How long did it take to break even?

?? What were your actual startup costs beyond what is in the Financial Disclosure Document?

?? What would you have done differently financially in your first year?

Some franchisees will not answer financial questions, and that is okay. We focus on identifying patterns across multiple validation calls to paint an accurate financial picture.

A Unique Opportunity Only Found in Franchising

Here’s what makes validation calls so powerful:

  • If you start an independent business, you have no one to validate your investment with. You can research the industry, but there is no proven system with real operators to call.
  • Franchising is different. You have access to people running the exact business you are considering. The opportunity to hear about their wins, struggles, and financial performance before you invest is something that does not exist in traditional business ownership.
  • Informed franchisees leverage this opportunity to its fullest by going in prepared and asking strategic questions, recognizing trends across multiple calls, and filtering reality from emotion.

What’s Your Next Step?

Making validation calls without a strategy is like flying blind. You might get some good insights, but without structure, critical questions remain unanswered.

I help my clients turn validation calls into powerful decision-making tools. Together, we:

? Create a strategic question list tailored to your specific concerns.

? Identify which franchise owners to call based on background and success level.

? Debrief after each conversation to extract key insights.

Click the link in the comments to schedule a conversation. Your future franchise investment deserves more than wishful thinking. Let’s ensure you enter with clarity and confidence.

#94XMovement #Franchising #BusinessOwnership #FranchiseSuccess #Entrepreneurship #FranchiseValidation #DueDiligence #Leadership

Kristin Kienzle

Founder of Utopia Modern Salon Suites | Building Communities for Beauty Professionals Through Suite Leasing and Franchise Opportunities

1 周

Those are three questions I'd love to answer in depth! Great article - great questions.

Luke Frey

Helping Military Veterans, Corporate Survivors, and Franchise Owners Create Lifestyle Freedom and Financial Security | Author | Franchise Partner Advocate

1 周

The greater the obstacle you overcome, the more confidence you earn. Click the calendar link and take the first step to create your generational wealth in franchising - https://calendly.com/bvea/30min.

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