1851

Although franchising can offer a proven a reliable path to&nbsp;<a href="https://1851franchise.com/why-buy-a-franchise-2714619#home">successful business ownership</a>, not all franchise concepts are created equal. When&nbsp;<a href="https://1851franchise.com/how-do-you-do-due-diligence-on-a-franchise-2716448">researching</a> different franchise brands, candidates may come upon various complaints from other franchisees, whether it be through online reviews, validation calls or store visits. While it is important to gather as much information as possible during the due diligence process, franchisee prospects should understand how to weigh these complaints correctly when it comes time to make a final decision.“Talking to&nbsp;<a href="https://1851franchise.com/five-ways-to-ensure-strong-validation-and-fuel-franchise-development-5359">existing franchisees</a> can give prospects a real-life example of what to expect, as these are people who followed the model and have hopefully seen success,” said&nbsp;<a href="http://www.francaptain.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=selecting-a-franchise-how-to-weigh-complaints-about-a-franchise-system-2718484" target="_blank" rel="nofollow">Franchise Captain</a> founder&nbsp;<a href="https://www.linkedin.com/in/coreyelias?utm_source=1851franchise.com&utm_medium=article&utm_campaign=selecting-a-franchise-how-to-weigh-complaints-about-a-franchise-system-2718484" target="_blank" rel="nofollow">Corey Elias</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.”But what if the bad seems to outweigh the good? If candidates continually hear negative feedback from existing franchise owners, it may be a sign to avoid moving forward, but Elias says it is important to remember that everyone’s experience with a franchise is going to be a little different.“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&nbsp;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.”<a href="https://eauth.com/bever/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=selecting-a-franchise-how-to-weigh-complaints-about-a-franchise-system-2718484" target="_blank" rel="nofollow">Charlie Bever</a>, a senior franchise consultant with&nbsp;<a href="https://eauth.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=selecting-a-franchise-how-to-weigh-complaints-about-a-franchise-system-2718484" target="_blank" rel="nofollow">The Entrepreneur Authority</a>, 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.”&nbsp;One area where complaints should be weighed heavily is in&nbsp;<a href="https://1851franchise.com/understanding-item-3-of-the-franchise-disclosure-document-litigation-history-2703061">Item 3 of the brand’s FDD</a>, which outlines litigation. “If brands have litigation on the books, it can be a bad sign,” Elias said. “But it is also a matter of understanding why that litigation exists. If a brand is large with hundreds of units, they will likely end up with at least some litigation. It takes time and research to really dig in and understand if those instances are red flags or not.”Additional issues that need to be considered are any bankruptcies, too many owners exiting the system and a lack of projected growth by state for the franchisor, Bever says.&nbsp;In terms of that projected growth, Elias says franchisee candidates should do their own research to determine whether complaints about the system line up with the overall health of the brand. “I always tell franchisees to look at&nbsp;<a href="https://1851franchise.com/the-most-important-items-in-an-fdd-item-20---outlet-transfer-and-franchise-owner-information-2712074">Item 20</a> of the FDD — how many units have opened, how many closed,” he said. “If a brand is closing more units than they are opening, that could be a problem. Sometimes it can be explained, but franchisees want to join a system that people are already successful in.”Bever says a weak financial performance or lack of a thorough financial performance representation (<a href="https://1851franchise.com/how-to-make-sense-of-item-19-in-an-fdd-2714788">Item 19</a>) could also suggest complaints about the system are valid. “If the data surrounding the items mentioned is negative, this may require deeper questioning of the franchisor,” said Bever.&nbsp;By understanding the gravity of certain complaints and the ways to dive deeper into concerns, candidates can be better prepared to analyze several franchise opportunities and discern which ones are well-positioned for success. Prospects should also enlist the help of professional&nbsp;<a href="https://1851franchise.com/the-pros-and-cons-of-working-with-a-franchise-broker-2712131">franchise brokers and consultants</a>, who can help them ask the right questions and get to the bottom of potential red flags.&nbsp;

Selecting a Franchise: How to Weigh Complaints About a Franchise System

1851 Franchise

Talking to existing franchisees can reveal complicated insights into a brand, which is why candidates need to dive into the due diligence process to ensure they have all the information before committing (or not committing) to a franchise concept.

selecting-a-franchise-how-to-weigh-complaints-about-a-franchise-system

Comfort Keepers

Comfort Keepers - Midyear Press Release 2025 - 1851 Franchise

Comfort Keepers® Hits Mid-Year Stride With Strong Franchise Growth and Rising Demand for In-Home Care

comfort-keepers-franchise-midyear-momentum-2025

petbar

petbar - Garrett Dewan - Why I'm Investing - 1851 Franchise

Why Garrett Dewan Is Choosing To Reinvest in petbar

petbar-franchise-austin-garrett-dewan-multi-unit

Paris Baguette

NJBIZ: Paris Baguette Ramps Up Expansion With New Franchises, Facility and 2030 Growth Target

njbiz-paris-baguette-ramps-up-expansion-with-new-franchises-facility-and-2030-growth-target

Busy Bee Jumpers

Top 10 Reasons To Buy a Busy Bee Jumpers Franchise in 2025

top-10-reasons-to-buy-a-busy-bee-jumpers-franchise-in-2025

Home Halo

home-halo-former-athletes-frachisees-image

Why Former College Athletes Can Make Winning Home Halo Franchise Owners

former-college-athletes-home-halo-franchise

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

Wendy's CEO Kirk Tanner Steps Down - Breaking News - 1851 Franchise

Wendy’s CEO Kirk Tanner Steps Down Amid Challenges, Leaving Franchisees Facing Uncertainty

wendys-ceo-transition-kirk-tanner-franchisee-uncertainty

"Come in, We're OPEN" sign against abstract background

Small Business Optimism Dips, Raising Concerns for Franchise Owners

small-business-optimism-dips-raising-concerns-for-franchise-owners

Photo of Roof Scientist truck and trailer

Roof Scientist Expands Into Northern Indianapolis as Entrepreneur Dale Speckman Launches New Business in Fishers

roof-scientist-expands-into-northern-indianapolis

Image of Donald Trump pointing with red stripes in the background

August 1 Tariff Deadline Is Said to Have ‘No Extensions’: What This Could Mean for Franchises

august-1-tariff-deadline-franchise-impact

What June’s Jobs Report Means for the Franchise Industry

what-junes-jobs-report-means-for-the-franchise-industry

From Prescriptions to Pastries: Kari Khandelwal Creates a Comforting Community Bakery 

From Prescriptions to Pastries: Kari Khandelwal Creates a Comforting Community Bakery in Overland Park, Kansas

paris-baguette-franchise-overland-park-khandelwal

Kansas Couple Revitalizes Local Childcare With Children’s Lighthouse

From Corporate Careers to Community Roots: Kansas Couple Revitalizes Local Childcare With Children’s Lighthouse

kansas-couple-opens-childrens-lighthouse-gardner-olathe

Hely and Hiral Patel Bring Their Longtime Dream to Life With The Brass Tap

brass-tap-franchise-pasadena-maryland-hely-hiral-patel

Franchisee spotlight graphic with photo of Ricki Oberoi and Layne's Chicken Fingers logo

Multi-Unit Wendy’s Operator Signs 12-Unit Deal With Layne’s Chicken Fingers

ricki-oberoi-laynes-chicken-fingers-growth

The Ultimate Guide to Selling Franchises: How To Create a Strong Incentive

how-to-build-strong-incentives-to-attract-prospective-franchisees

Hooters Leans Into Franchising With Closure of 30 Company-Owned Stores - Agg - 1851 Franchise

Selecting a Franchise: How to Weigh Complaints About a Franchise System

MORE STORIES LIKE THIS