1851

For many, purchasing a franchise will be the most significant investment they’ll ever make, and no one should ever buy a franchise without performing the proper due diligence. And while looking over the&nbsp;<a href="https://1851franchise.com/the-franchise-disclosure-document-what-items-are-most-important-2709318">Franchise Disclosure Document</a> or visiting a&nbsp;<a href="https://1851franchise.com/how-to-make-the-most-of-a-franchise-discovery-day-2714732">Discovery Day</a> is important, candidates should also consult with those who know the day-to-day life of the business best — the actual franchise owners. Talking to existing franchisees who already have experience operating the specific business can give candidates a fuller understanding of the brand and the franchise requirements.“These are people who followed the model and have hopefully seen success, so talking to existing franchisees like that gives prospects a real-life example of what to expect,” said&nbsp;<a href="https://www.linkedin.com/in/coreyelias?utm_source=1851franchise.com&utm_medium=article&utm_campaign=before-you-sign-an-agreement-talking-with-franchisees-2718507" target="_blank" rel="nofollow">Corey Elias</a>, founder of&nbsp;<a href="http://www.francaptain.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=before-you-sign-an-agreement-talking-with-franchisees-2718507" target="_blank" rel="nofollow">Franchise Captain</a>. “Franchisees are also relatively unbiased — there is no financial incentive to lie. They will tell you how it is: the good, the bad and the ugly.”It’s important to speak to a whole bevy of individuals. Franchises might have a list of recommended franchisees to speak to, but don’t limit yourself to only contacting these individuals. Moreover, consider speaking to those who have left the system to get their perspective and experience with the brand. A good rule of thumb is to call 10 to 15 franchisees. The contact information for these owners should be found in&nbsp;<a href="https://1851franchise.com/the-most-important-items-in-an-fdd-item-20---outlet-transfer-and-franchise-owner-information-2712074">Item 20 of the FDD</a>, which offers a spreadsheet that contains all the franchises that have opened, closed or transferred in the past three years.&nbsp;<a href="https://eauth.com/bever/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=before-you-sign-an-agreement-talking-with-franchisees-2718507" target="_blank" rel="nofollow">Charlie Bever</a>,&nbsp;<a href="https://eauth.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=before-you-sign-an-agreement-talking-with-franchisees-2718507" target="_blank" rel="nofollow">The Entrepreneur Authority</a> senior franchise consultant, says he instructs all of his candidates to make at least five validation calls during the due diligence process. “That way you have a nice cross-section of opinions,” he said. “If you made five calls and all were negative, this would be an obvious problem. It usually doesn't happen like that though. For every ‘bad’ call, the prospect likely receives four positive calls or reviews. Making validation calls is a crucial part of the investigative process.”If franchisees find an alarming number of complaints about the franchise from other franchisees, it may be a sign to avoid moving forward with the process. But Elias says it is important to take franchisee complaints with a grain of salt.“The process of choosing a franchise is&nbsp;<a href="https://1851franchise.com/finding-the-right-franchise-fit-what-franchisees-look-for-when-buying-a-franchise-2713801">extremely personal</a> — is the concept right for me? If I talk to five franchisees and only one gives me a bad review, I’m not overly worried unless that person has a very similar situation and background,” said Elias. “If they are struggling because they don’t have a sales background, and I also don’t have a sales background, that could be a problem. Dig deeper — talk to other franchisees, focus on that sales background and figure out if it is really a problem.”During these conversations, candidates should ask questions that may not be answerable through the FDD, such as whether the experience has been fulfilling, whether it met the person’s expectations, whether the leadership team is as supportive as they claim, etc.&nbsp;In addition, talking to existing franchisees can give candidates valuable insight into the true culture of the franchise system and the type of network they will be joining.&nbsp;“There is always going to be some hesitancy when you consider becoming a franchisee and following someone else’s path and guidance,” said&nbsp;<a href="https://1851franchise.com/christmasdecor/info">Christmas Decor</a> franchisee Adam Anderson. “A big part of the reason we fell in love with the brand was because of the network of franchisees — that is where success comes from. The strength of that network can provide franchisees with valuable lessons and best practices, and franchisees should be able to reach out to other owners, ask questions, visit locations and see how they operate.”By reaching out to established franchisees, candidates can be better prepared to analyze the specifics of franchise opportunities and discern which ones are well-positioned for success and best fit their individual needs.

Before You Sign an Agreement: Talking with Franchisees

1851 Franchise

As a prospective franchisee, speaking with established franchisees can provide an invaluable form of validation and offer in-depth insight into the specifics of the day-to-day operations and larger culture of the organization.

before-you-sign-an-agreement-talking-with-franchisees

Caring Transitions

Celebrating National Women’s Entrepreneurship Day by Honoring the Women of Caring Transitions

celebrating-national-womens-entrepreneurship-day-by-honoring-the-women-of-caring-transitions

Minuteman Press International

Minuteman Press franchise owners Shane, Carlene, and Steve Brunk, Treasure Coast, FL.

Minuteman Press Franchise Owners Across Florida Build Momentum

minuteman-press-franchise-owners-across-florida-build-momentum

Express Employment Professionals

Express Employment Professionals franchise, people talking in a lobby

Express Employment Eyes Palm Springs as a Hot Market for Franchise Growth

express-employment-palm-springs-coachella-expansion-franchise

Mellow Mushroom

image of mellow mushroom FSR Magazine’s NextGen 25 List of Rising Restaurants To Watch Beyond 2025

Mellow Mushroom Lands on FSR Magazine’s NextGen 25 List of Rising Restaurants To Watch Beyond 2025

mellow-mushroom-fsr-nextgen-25-rising-restaurants-2025

Beansquad

BeanSquad Franchise - What BeanSquad Did for This Amazon DSP Owner’s Books and Bottom Line

What BeanSquad Did for This Amazon DSP Owner’s Books and Bottom Line

beansquad-amazon-dsp-bookkkeeping

Buying a Franchise Masterclass

 Franchise Opportunities

Get Support Buying a Franchise

How to Buy a Franchise White Paper

How to Buy a Franchise

How to Sell Franchises

How to Grow a Franchise

Find a Franchise Supplier

1851 Franchise Opportunities

Franchisor News

Franchisor Power Rankings

FranCamp Mastermind Summit

Franchise Development Website Builder

Franchise Resources

What ALEC-Laffer's Report Means for Franchising

Website Awards

Power Rankings

About 1851

Advertise on 1851

Contact 1851 Editorial

Terms of Use

1851 Login

GROWTH CLUB LOGIN

facebook

instagram

twitter

linkedin

youtube

Jobseekers Are Flocking to “Unglamorous” Jobs — And Home Service Franchises Could Benefit

Jobseekers Are Flocking to “Unglamorous” Jobs — And Home Service Franchises Could Be Poised To Benefit

jobseekers-shift-boosts-home-service-franchises

The future of recovery studios, health and wellness franchise

The Future of Recovery Studios: Why Wellness Franchises Are the Next Fitness Boom

the-wellness-boom-recovery-franchises-future-fitness

Design with government building & "Open for Business" sign against American flag backdrop

Government Reopens After 43-Day Shutdown, Bringing Relief to Small Businesses and Franchises

government-shutdown-ends-franchise-impact

As Starbucks and Dunkin’ Navigate a Changing Market, New Coffee Players Keep Gaining Ground

starbucks-dunkin-franchise-coffee-market-trends

Paris Baguette Welcomes Zac Sulma as New Chief Operating Officer

new-coo-zac-sulma

image of jerome hanway from right at home Las Cruces, New Mexico 1851 franchise franchisee spotlight

Jerome Hanway Is Building His Right at Home Franchise Around His Mission To Serve

right-at-home-franchise-las-cruces-jerome-hanway

image of stephen westerman and matthew westerman, owners Fort Walton Beach Two men and a junk truck

Twin Brothers Move From Managers to Owners with New TWO MEN AND A JUNK TRUCK Franchise on the Gulf Coast

twin-brothers-two-men-and-a-junk-truck-fort-walton-beach

image of michael panos and michel panos, owners of mellow mushroom in Atlanta

The Panos Family’s Role in Preserving Mellow Mushroom’s Character — and Expanding in Atlanta

mellow-mushroom-franchise-panos-restaurant-group-metro-atlanta

1851 Franchisee Spotlight graphic with photo of Eli Cohen, Layne's Chicken Fingers logo

C5 Restaurants Grows its Texas Footprint with 40 Layne’s Chicken Fingers Locations Planned Statewide

eli-cohen-laynes-chicken-fingers-texas

A Practical Playbook: Who To Call First When Franchising Your Business

franchising-your-business-who-to-call-first

Photo of group of dogs standing together in day care facility

Top Pet Boarding and Day Care Franchise Opportunities for 2025

top-pet-boarding-daycare-franchises

AI-related job cuts, October U.S. job cuts, American job cut record

AI-Fueled Layoffs Reshape the U.S. Job Market — And Highlight Franchising’s Resilience

Before You Sign an Agreement: Talking with Franchisees

MORE STORIES LIKE THIS