Growing a Franchise
Franchisee validation offers real insight into a brand’s culture, operations and support, making it a powerful resource for candidates evaluating a potential investment.
Franchisee validation offers more than just confirmation that a system works — it provides a glimpse into a brand’s culture, operations and support straight from the people living it every day. In franchising, few steps are more influential in the sales process. Prospective buyers lean heavily on validation to gauge whether the opportunity in front of them aligns with their goals, values and expectations.
These conversations go well beyond financials. Candidates ask about everything from profitability and margins to day-to-day operations, training support and leadership quality. For emerging brands that don’t yet have a long public track record, validation can be the tipping point between a deal closing or falling apart.
Validation plays such a critical role that it isn’t optional — it’s built into the franchise sales process by regulation.
“It has to be important by design, frankly, because the FTC has set up the rules so that we can’t always fully disclose — particularly on the profitability side — what prospective owners can reasonably expect to earn as a result of their involvement in the franchise,” said Bob Campbell, vice president of franchise development for Rocket Fizz.
Terri Harof, director of franchise development for Workout Anytime, echoes that sentiment.
“It’s of utmost importance,” Harof said. “At the end of the day, I am a salesperson, and I want these potential franchisees to be able to talk to other people who’ve done exactly what they’re thinking about doing. This is a long-term marriage. It’s a 10-year commitment, and we want these candidates to come on board and there not be any surprises.”
Validation works best when it’s authentic — not overly scripted or orchestrated. In Campbell’s experience, happy franchisees don’t need prompting to share their stories.
“It kind of happens naturally through your own conversations with owners,” he said. “I wouldn't say I've ever needed to really go out and create any 'strategies' to gain positive feedback.”
That sense of authenticity is rooted in system health. If a brand is supporting its franchisees well, fostering transparency and helping them build profitable businesses, validation tends to take care of itself.
“If you have a healthy system, it all comes down to how you, as a franchisor, are interacting with your franchise community,” Campbell said. “Are you being positive? Do they have the feeling that you're sincere and wanting to make their business better, their day-to-day operating life better?”
Harof says she’s found the same to be true. “It’s one thing for me to tell them about it,” she said. “It’s another thing to hear from a franchisee who’s actually gone through all of it.”
While validation should remain genuine, connecting candidates with franchisees who can clearly and confidently share their experience is key.
“You want somebody who’s articulate and can convey the brand of the company well in discussions,” Campbell said. “It’s like any other informational meeting — you want somebody who’s capable of conveying the salient points clearly.”
Harof notes that Workout Anytime franchisees are listed in the brand’s FDD, meaning candidates can reach out to any of them. Still, she provides guidance.
“I send them about 10 different people to reach out to, and I do try to rotate it because you don’t want the same people having to do validation calls day in and day out,” she said. “If I’ve got a franchisee in the same geographic area they’re looking at, and I know they’re a strong validator, I’ll introduce them directly.”
Harof says she often sets up these connections via group text, making it easier for both parties to connect and move the conversation forward.
Profitability and financial performance are top concerns during validation — especially for retail-focused brands like Rocket Fizz.
“We have about 30,000 retail items that franchisees can choose from,” Campbell said. “Ultimately, their store will probably have around 3,500 SKUs at any given time. It's really a merchandise-based business, not a service business.”
While Rocket Fizz provides revenue data in its FDD, candidates often want more detailed conversations to support pro formas and SBA loan applications.
“It’s more about gross margin per item,” Campbell said. “They’re usually trying to get a loan, and they need that information to secure financing.”
At Workout Anytime, Harof says the top concern is often real estate.
“Where we go is so important, and we turn down sites on a regular basis,” she said. “We say that we protect franchisees from themselves. We had a Florida franchisee who wanted a 26,000-square-foot space with crazy-high rent. He was a first-time buyer, and we had to save him from himself. Would we let a seasoned franchisee do something like that? Maybe. But a first-time buyer? Absolutely not!”
Strong validation doesn’t just help close deals — it often leads to more referrals and a stronger brand community.
Campbell shared a story about two Rocket Fizz franchisees in suburban Chicago who initially had concerns about overlapping markets.
“We put the parties together, and it had a wonderful outcome,” he said. “They ended up assisting each other. The incoming franchisee happened to be an attorney and helped the existing one with a personal legal matter.”
Harof has seen many sales close after validation — particularly with candidates who connected with franchisees who share their background.
“One of our best validators is Jerry Pew,” she said. “He was a member who fell in love with the brand, opened one gym, and eventually grew to 19 locations in six states. He followed the playbook, and he’s helped a lot of candidates feel confident coming on board. Today, he’s our CEO.”
Another example, Harof says, is a father-son duo who started with one gym and now own four.
“Brett started as a personal trainer and brought his dad in as the financial partner,” she said. “Now they’re both all-in. Brett even got his real estate license and now helps other franchisees find great sites. He looks at it as a broker, but also as a franchisee. That’s been a huge help to our brand.”
Franchisee validation isn't just a checkpoint in the sales funnel — it’s the heartbeat of a healthy franchise system. When franchisees feel supported, respected and confident in their business, it shows — and candidates pick up on it immediately.
“We’ve never said we want to be the biggest,” Harof said. “We just want to have the largest number of successful franchisees.”
Brands that invest in meaningful relationships with their owners create environments where validation becomes more than a sales tool — it becomes a reflection of the franchise’s values, leadership and long-term potential.
Every great franchisee had help buying a franchise. Want to learn more about how 1851 helps franchisees find the right franchise opportunity? Visit www.1851growthclub.com and start your journey.
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