the hidden risk of franchise validation calls - and how to ask the right questions
The Validation Trap
Franchise brokers and franchisors often say the same thing:
“Don’t just take our word for it — talk to current franchisees.”
And you should. Franchisee validation calls are an important part of the due diligence process.
But here’s the problem:
Many of those calls don’t reflect the full truth. And unless you know what to ask — and who to ask — you might walk away with a false sense of confidence that leads to a very expensive decision.
How the Validation Process Really Works
Franchisors are not required to connect you with anyone. The Franchise Disclosure Document (FDD) will include a list of franchisees (Item 20), but most franchisors steer you toward specific “references” — usually during Discovery Day or follow-up conversations.
These franchisees are often:
Top performers
Recently awarded “franchisee of the year”
In territories with more favorable economics
Actively selling their business (and hoping you’ll buy it)
In other words, you’re often talking to the best-case scenarios — not the average experience, and certainly not the worst.
The Psychology at Play
What makes this so dangerous is that franchise buyers want to believe they’re making the right decision. By the time validation calls occur, you’ve likely:
Spent weeks researching
Had multiple sales calls
Built a business plan around pro forma numbers
Maybe even told your family and friends
That’s a powerful psychological trap. You’re not just gathering facts anymore — you’re looking for reassurance.
Franchisors know this. And the validation calls, when curated, deliver exactly that.
What You’re Missing When You Don’t Ask Better Questions
Most validation calls follow a familiar script:
“Are you happy with the franchisor’s support?”
“Is the training good?”
“Would you do it again?”
These aren’t bad questions. But they often yield vague or rehearsed answers.
Here are better ones:
“How close was your actual revenue to what was presented during Discovery Day?”
“What hidden costs caught you off guard in year one?”
“What percentage of your fellow franchisees are struggling — and why?”
“How often do you speak with the franchisor now compared to the first 6 months?”
“Have you had any regrets or surprises along the way?”
And here’s a big one:
“Can you introduce me to a few other owners who’ve had a different experience?”
You Also Need to Talk to Former Franchisees
One of the biggest red flags in the FDD is a long list of terminated or transferred units — and yet many buyers never call those former owners.
They may have:
Walked away from the system
Sold under distress
Been legally silenced with an NDA
If the list is long, and no one will talk — that’s a sign.
The Cost of Getting This Wrong
Too many smart, capable people assume the validation process is designed to protect them. In reality, it’s part of the sales pipeline.
If you don’t dig deeper, you may walk into a system that doesn’t work the way you were led to believe. That can result in:
Higher-than-expected costs
Lack of ongoing support
A business that’s harder and more expensive to grow than it should be
The Bottom Line: Don’t Rely on a Scripted Process
Franchisee validation is critical. But it’s only valuable if you:
Talk to the right people (not just the ones the franchisor recommends)
Ask the right questions
Cross-reference the answers with the FDD and financials
Stay skeptical, especially when things sound too good to be true
Want Help?
Franchise Clarity offers objective, conflict-free guidance to help you evaluate franchise opportunities before you commit.
👉 [Schedule a Free Clarity Call]
👉 [Download Our Franchise Validation Call Script]
Make your decision with eyes wide open.
