The Validation Call Script: Exactly What to Say to Current Owners

The Franchise Disclosure Document tells you what the franchisor wants you to know. Validation calls tell you what they hope you never find out.

Item 20 of every FDD contains a list of current franchisees with their contact information. This is not a courtesy — it is a legal requirement. The franchisor cannot stop you from calling these people. And those calls will tell you more about your potential investment than any glossy brochure or discovery day presentation.

But most prospective franchisees waste these calls. They ask vague questions, accept surface-level answers, and hang up feeling reassured without learning anything. The franchisees they call are often the ones the franchisor steered them toward — the happy operators who will sing the company line.

Here is how to run validation calls that actually protect your investment.

The Foundation: Who to Call and How Many

The franchisor will give you a "validation list" of 5-10 franchisees. These are their best performers, their most loyal advocates, their unofficial sales team. Call them — but do not stop there.

The minimum: 10 calls. 15-20 is better. You need enough data points to see patterns. One unhappy franchisee might be a bad operator. Five unhappy franchisees with the same complaint is a systemic problem.

Who to prioritize:

• Franchisees NOT on the validation list. Open the Item 20 exhibit and pick names at random. These operators have not been coached on what to say.
• Franchisees in similar markets. If you are opening in a suburb of 80,000 people, talking to someone in Manhattan tells you nothing. Find operators in comparable demographics.
• Franchisees who opened 2-3 years ago. They have survived the ramp-up but remember the pain. They are past the honeymoon phase but not yet so invested they cannot be honest.
• Former franchisees. Item 20 also lists people who left the system. These calls are gold. They have nothing to lose by telling you the truth.

The Opening: How to Get Them to Talk

Franchisees are busy. They get these calls regularly. Most will give you 15-20 minutes if you approach them correctly.

The opener that works:

Key elements: You acknowledged their time is valuable. You signaled you want honesty, not a sales pitch. You positioned yourself as a peer making a business decision, not a tire-kicker.

If they hesitate: Offer to call back at a specific time that works for them. Most will agree. If they flat-out refuse to talk, note that — it might mean they have nothing good to say but do not want to badmouth the brand.

The Script: Questions That Reveal the Truth

Do not ask "Are you happy with your franchise?" You will get a useless yes or no. Instead, ask questions that force specific, concrete answers.

Financial Reality

"How long did it take you to reach break-even?"

This is the most important question. The FDD will show you "estimated initial investment." This tells you how long that investment takes to stop bleeding cash. If the franchisor says 6 months and every franchisee says 18 months, you have just identified a major discrepancy.

"If the Item 19 shows average revenue of $X, how does your location compare?"

This question does two things: it shows you have done your homework, and it gets them to place themselves in the distribution. If they are below average, ask why. If they are above average, ask what they did differently.

"What does your actual take-home look like after royalties, rent, labor, and everything else?"

Some will not answer this directly. That is fine. But many will give you a range or a percentage. "I take home about 10-12% of revenue" is actionable information. Compare it to the implied margins in the FDD.

"Were there any startup costs that surprised you — things that weren't in the FDD estimate?"

The FDD lowballs working capital requirements. Every experienced franchisee knows this. Let them tell you what they wish they had budgeted for.

Franchisor Support

"When you have a problem, how responsive is corporate?"

Listen for specifics. "They're great" means nothing. "I can get my field consultant on the phone within 24 hours and they actually help solve problems" means something. "I submit tickets into a black hole and never hear back" means something else entirely.

"How useful was the initial training? What did you wish they had covered?"

Training quality varies wildly. Some franchisors run world-class programs. Others hand you a manual and wish you luck. The gaps they mention are the gaps you will have to fill yourself.

"Has the franchisor made any significant changes to the system since you joined? How did those affect you?"

This reveals how the franchisor treats existing franchisees when rolling out new initiatives. Did they mandate an expensive POS upgrade with 30 days notice? Did they launch a discount promotion that crushed margins? The pattern tells you what to expect.

Operational Reality

"What does a typical week look like for you? How many hours are you working?"

The sales pitch says "be your own boss." The reality might be 60-hour weeks for the first two years. Know what you are signing up for.

"What's your biggest ongoing challenge?"

Labor? Supply chain? Landlord? Local competition? Marketing? Their answer tells you where you will spend your energy. If every franchisee mentions the same challenge, that is the real job.

"How do you handle [specific operational issue relevant to the business]?"

This shows you have thought about the actual work. Ask about whatever keeps you up at night — staffing, inventory management, customer complaints, seasonal fluctuations. Their solutions become your playbook.

The Future

"Are you planning to open additional units?"

If yes, that is a strong signal. They would not expand a failing investment. If no, ask why. "I'm happy with one" is different from "I can't afford to" or "I wouldn't recommend it."

"Knowing what you know now, would you make the same investment again?"

This is the question. Give them space to answer honestly. A pause before "yes" tells you something. A qualified "yes, but I would do X differently" tells you something. An immediate, enthusiastic yes — especially from someone not on the validation list — is the strongest endorsement possible.

"What advice would you give someone in my position?"

Open-ended. Let them tell you what matters. The answers often surprise you.

Reading Between the Lines

What franchisees do not say is as important as what they do say. Learn to hear the subtext.

Calling Former Franchisees

Item 20 lists franchisees who left the system in the past year — through termination, non-renewal, transfer, or "ceased operations." These are the most valuable calls you will make.

Former franchisees have no loyalty to protect. No fear of retaliation. No reason to sugarcoat. They will tell you exactly what went wrong.

Adjust your opener:

Some will not want to talk. Others will talk for an hour. The ones who talk will tell you things no current franchisee ever would.

Questions for former franchisees:

• "What ultimately led to your decision to leave?"
• "Was there a specific breaking point, or a gradual realization?"
• "Looking back, were there warning signs you missed during your due diligence?"
• "How did the franchisor handle your exit?"
• "What would you tell someone considering this investment today?"

If you hear the same story from multiple former franchisees — the same complaint, the same breaking point — that is not a coincidence. That is the system showing you who it really is.

Red Flags to Watch For

Across your validation calls, certain patterns should stop you cold:

Nobody wants to talk. If franchisee after franchisee declines your call or gives one-word answers, something is wrong. Happy franchisees are usually willing to share their success. Unhappy franchisees fear retaliation.

The numbers do not match the FDD. If Item 19 shows average revenue of $800k and every franchisee you talk to is doing $500k, the "average" is being skewed by outliers or corporate locations. Dig deeper.

Everyone mentions the same problem. If eight out of ten franchisees bring up the same issue unprompted — a supply chain problem, a technology failure, a policy that kills margins — that issue will become your problem too.

Recent franchisees are unhappy; long-tenured franchisees are fine. This suggests the economics have changed. The people who joined five years ago got a better deal than the people who joined last year. You will get today's deal, not yesterday's.

Nobody is expanding. In a healthy system, successful franchisees open additional units. If nobody is growing, ask yourself why.

"Validation calls are not about finding reasons to say yes. They are about finding reasons to say no. If you cannot find any reasons to walk away after 15 calls, you might have found a good investment."

After the Calls: What to Do With What You Learned

Compile your notes. Look for patterns. Then pressure-test your findings:

If franchisees reported longer break-even times than the FDD suggests: Adjust your working capital budget accordingly. Add 50% to whatever you planned.

If franchisees reported weak support: Factor in the cost of outside consultants, additional training, or a longer learning curve. You will be building capabilities the franchisor should have provided.

If franchisees reported margin pressure from mandated suppliers: Calculate the "hidden tax" and add it to your pro forma. Ask the franchisor directly about supplier rebates.

If former franchisees painted a consistent negative picture: Take it seriously. They have no incentive to lie. If anything, they might understate the problems to avoid seeming bitter.

Your validation calls are not the end of due diligence — they are the reality check that makes every other piece of information meaningful. The FDD is theory. Franchisees are practice. Trust practice.