Interviewing Franchisees: A Critical Step in Your Due Diligence

When you’re looking at purchasing a franchise, you can learn a lot from the franchisor’s marketing materials, the Franchise Disclosure Document (FDD), and discussions with franchise consultants. However, there’s one source of information that always provides the most real-world information: the current franchisees. These are the people who’ve already taken the leap, invested in the business, and navigated the ups and downs you’re about to face.

In this article, we’ll dive into why interviewing existing franchisees is so important, how to prepare for these conversations, and the key questions to ask in order to get a clear picture of what owning a particular franchise is really like.

1. Real-World Insights

Franchisees can tell you whether the franchisor delivers on its promises: from marketing support to operational guidance. They’ll share their day-to-day realities, the challenges they’ve overcome, and the successes they’ve achieved.

2. Financial Clarity

While franchisors may provide financial performance representations (in Item 19 of the FDD), actual franchisees can give you anecdotal but concrete insights into revenue ranges, costs, and profitability. You can learn what those numbers look like in practice and how long it took them to achieve break even or turn a profit.

3. Validation of Franchisor Support

Hearing directly from owners about training sessions, field support, and responsiveness in times of need will tell you a lot about the franchisor’s true commitment to helping franchisees succeed.

4. Community Feel

Talking to multiple franchisees reveals whether there’s a collaborative, supportive culture or if franchisees typically operate in isolation. This culture can significantly affect your experience as a new owner.  You want to join a franchise system full of people who you feel are successful, would be valuable sounding boards and support and frankly, who you would enjoy spending time with on peer learning sessions, the national conference or as a potential neighboring franchisee.

1. Review the FDD

The FDD typically includes contact information for current (and sometimes former) franchisees. Make note of franchisees who are in markets similar to yours or who have a business background like yours.

2. Do Your Homework

Check online reviews, local news stories, or any mentions of that franchise location. This can help you form more targeted questions.

3. Draft a Question List

Prepare relevant questions to maximize the value of your conversation. Keep them organized by topic—financials, operations, marketing, etc.—and ensure they’re open-ended to encourage in-depth answers.

4. Set a Respectful Tone

Reach out politely and respect the franchisee’s time. Be clear about why you’re calling or emailing, and keep the conversation professional, while also being friendly and appreciative.  It is typically best to share your research to date, why you like the franchise and a little bit about yourself as you open the call.  Then learn more about them and their experience before drilling into detailed financial questions, etc.  In my experience franchisees are happy to share their experiences with incoming franchisee candidates, but they get a lot of these calls so it is best to keep it focused and polite as some are more open books than others.

Here’s a breakdown of questions to help you get meaningful insights:

1. Opening Questions & Topics

• Tell them about your background and the research you’ve already completed, so they know your seriousness.

• Ask them about their background before becoming franchisees and how they arrived at the decision to buy into this franchise

• Let them talk and remain flexible in where the conversation goes.  After making thousands of these validation calls I can tell you that A) they will share what is most important and in their mind, the most helpful to you B) even within the same franchise system, these calls can feel very different and that’s what you’re looking for.

• “How do the ongoing royalties and marketing fees impact your bottom line?”
  

  You’ll learn if the franchisor’s fees provide enough value or if they hinder profitability.

2. Daily Operations

• “What does a typical day or week look like for you?”
  Gives you an idea of workload and the nature of daily tasks.

• “What operational challenges have you faced, and how did you overcome them?”
  

  Reveals how well the franchisor’s systems adapt to real-world obstacles.

3. Support and Training

• “How effective was the initial training?”
  Helps you gauge whether you’ll be well-prepared when you launch.

• “Do you receive ongoing support, and how responsive is the franchisor?”
  Measures the franchisor’s dedication to your success after the initial setup.

• “What resources or tools do you find most helpful?”
  Offers a glimpse of practical assets like software, marketing materials, or operational checklists.

4. Marketing and Branding

• “Are the marketing programs effective in your area?”
  Helps you evaluate whether national or regional campaigns actually drive local sales.

• “Do you have flexibility to run local promotions?”
  If local marketing is crucial in your region, you’ll want to know how much freedom you have to adapt.

5. Financial Performance and Costs

• “How long did it take for you to turn a profit or reach your financial goals?”
  This reveals whether projections align with real-life timelines.

• “What unexpected expenses did you encounter?”
  

  Helps you plan for hidden costs or issues that aren’t highlighted in the FDD.

6. Relationship with the Franchisor

• “How would you describe your communication with the franchisor?”
  Understand if franchisees feel heard and supported.

• “Has the franchisor delivered on the promises they made during your sales process?”
  

  Provides a reality check on whether marketing claims align with post-launch support.

7. Overall Satisfaction

• “If you could go back, would you still invest in this franchise?”
  

  One of the most direct questions to assess regret or contentment.

1. Listen More Than You Talk

Allow the franchisee to share stories, examples, and advice without interruption. Their firsthand experience is invaluable.

2. Take Detailed Notes

Keep track of each franchisee’s responses. After interviewing multiple owners, it’s easy to forget who said what.

3. Gauge Consistency

Interview several franchisees to spot recurring themes—both positive and negative. If the same issues or praise keep popping up, it likely indicates a trend.

4. Respect Confidential Information

Franchisees might be hesitant to discuss detailed financials, especially profitability. Focus on ranges, numbers you’ve heard from other franchisee calls or growth patterns instead of exact numbers.

5. Thank Them

Franchisees are busy running their businesses. A simple expression of gratitude for their time can go a long way.

1. Compare Notes

If you’ve spoken to multiple franchisees, look for consistent feedback—especially around fees, franchisor support, and profitability timelines.

2. Revisit the FDD

Re-check any areas that don’t match up with franchisee feedback. Consider asking the franchisor to clarify.

3. Consult Professionals

A franchise attorney or financial advisor can help interpret or verify the information you’ve gathered.

4. Trust Your Instincts

If multiple conversations reveal serious concerns, you might want to explore other franchises. Alternatively, if the experiences are largely positive, that’s a strong sign you’re on the right path.

Interviewing existing franchisees is one of the most valuable steps in your due diligence process. These real-world perspectives let you go beyond what’s in the FDD or a glossy brochure, offering candid advice on everything from budgeting to day-to-day operations. By approaching these conversations thoughtfully and professionally, you’ll gain the insights needed to decide whether the opportunity is truly right for you.

Still unsure how to structure your franchisee interviews, or want guidance on interpreting the feedback you’ve gathered? Feel free to choose a time to talk for personalized advice. A well-informed decision now can pave the way for a more successful and fulfilling franchise journey ahead.