Franchise Validation Calls: How to Get the Truth
Validation is the most predictive step in franchise due diligence — when you know which questions to ask.
Validation calls — direct conversations with current franchisees — are the most predictive step in your due diligence. The franchisor will provide a list. Take that list, then ask for the full Item 20 contact list and call franchisees the franchisor did not recommend.
Who to Call
Speak with at least 10 current franchisees across multiple geographies and tenures. Include three franchisees in their first two years and three with five or more years of operating history.
Former Franchisees Matter Most
Item 20 requires the franchisor to list contact information for franchisees who left the system in the last year. These conversations are often the most revealing. Always make them.
The Right Questions
What does your P&L actually look like? What was the biggest surprise after you opened? What does ongoing support actually feel like? Would you do it again? Would you recommend the brand to a friend?
Listen for Patterns
Single complaints are noise. When three or four franchisees raise the same concern unprompted, that's signal. Take notes during every call so you can compare patterns afterward.
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