The 10 Questions Every Franchise Buyer Should Ask Existing Franchisees

Why Franchisee Calls Are Non-Negotiable

Item 20 of the Franchise Disclosure Document contains contact information for every current franchisee in the system, as well as franchisees who left within the past three years. This is one of the most valuable resources available to any prospective buyer, and one of the most underutilized.

Franchisors know their FDD inside out. They've answered every question you're likely to ask. Existing franchisees, by contrast, have no incentive to oversell the opportunity. They've lived it. Their perspective on what the franchisor told them versus what they actually experienced is irreplaceable.

The 10 Questions Worth Asking

1. If you could go back, would you buy this franchise again? The most direct question often produces the most revealing answer.

2. How accurate was the Item 19 data compared to your actual experience? This tests the reliability of the financial performance representations you've been shown.

3. How responsive is the franchisor when you have a problem? Support quality is one of the most common sources of franchisee dissatisfaction, and one of the hardest to assess from the FDD alone.

4. Were there any costs or fees that surprised you after you opened? The FDD discloses required fees, but not always the full picture of what running the business actually costs.

5. How long did it take to reach profitability? Ramp-up timelines vary widely and are rarely disclosed in Item 19.

6. How does the franchisor handle territory disputes or encroachment? Franchisees who have experienced this firsthand will give you a more accurate picture than the FDD language.

7. What does the training and support actually look like day-to-day? Initial training is described in Item 11, but ongoing support quality is best assessed by those receiving it.

8. Have you ever considered leaving the system? Why? Even franchisees who are satisfied will often share what nearly drove them out, and those near-misses are instructive.

9. What do you wish you had known before signing? An open-ended question that often surfaces issues you wouldn't have thought to ask about.

10. Would you recommend this franchise to a close friend or family member? The net promoter framing tends to produce more honest answers than "are you happy?"

How to Get the Most From These Calls

Call at least five to eight franchisees, including some who are newer to the system and some who have been operating for several years. If possible, speak with at least one franchisee who left the system (their contact information is also in Item 20). Keep the calls conversational rather than interrogative, and listen for what isn't said as much as what is.

A Crest Review report gives you the analytical foundation to make these conversations more productive. You'll already understand the FDD's key terms, financial structure, and risk profile before you pick up the phone.