What To Ask During Franchise Owner Calls Before You Sign

Before you commit to a franchised business, conversations with current operators can surface the true costs, local obstacles and everyday realities that paperwork alone won’t show.

Many prospective buyers underestimate the importance of these owner conversations, yet they’re often the clearest way to test whether a brand fits your market and temperament. Do these calls after you’ve been introduced to the brand and reviewed the Franchise Disclosure Document, but before you attend Discovery Day or ink a contract. A franchise consultant who’s worked with more than 1,000 candidates says roughly one in three prospects put off this step — and those who skip it frequently face surprises later on.

Know what the law requires and what it doesn’t. Franchisors must provide the same material facts to every candidate, but they aren’t forced to publish everything. You’ll always find Item 5 (initial fees), Item 6 (recurring fees) and Item 7 (estimated initial investment) in the FDD. Item 19, the section that can include historical sales and profit figures, may be detailed or nearly blank depending on the company. Some franchisors share only top-line sales; others provide full profit-and-loss breakdowns. New concepts or umbrella groups that sell different services under one corporate roof can make financial comparisons misleading.

Treat owner calls as fact-finding missions. Ask long-time and recent franchisees how long it took to reach break-even, what the most common causes of closures are, and how territories and competition affect sales. Request both upbeat and struggling references — operators who don’t perform well can reveal structural problems that happy owners won’t mention. Also probe training quality, staffing challenges, supply costs and whether marketing support actually drives customers locally. If the franchisor resists allowing contact with franchisees or pressures you to skip these talks, consider that a red flag.

Blend the FDD with qualitative insight and local research. Use the document to check fees and formal obligations, then use owner testimony to understand day-to-day margins and customer behavior in your area. Visit a few locations if you can. Talk to local competitors and potential customers. If you’re unsure how to interpret financial statements or territory maps, hire an experienced advisor to help. In short: take the paperwork seriously, but don’t treat it as the whole picture. Spending time on these calls now can save you money and headaches down the road.