How to Conduct Validation Calls That Reveal the Ugly Truth?

You have the list. A column of names and phone numbers for existing franchisees, the gatekeepers to the truth about your potential future. You’re told to “do your due diligence” and make the calls. But you already know the script you’re about to hear: “Everything’s great,” “The support is wonderful,” “I love being my own boss.” This polite, rehearsed exchange is designed to inform, but it often serves to obscure. It leaves you with a brochure-perfect image but no real intelligence.

The common advice—prepare questions, be polite, ask about a typical day—is fundamentally flawed because it positions you as a hopeful buyer, not a serious investigator. To get past the polished veneer, you must change the game entirely. This isn’t a friendly chat; it’s an intelligence-gathering operation. The goal isn’t to validate what the franchisor told you, but to uncover the operational realities they didn’t. This requires a different strategy, focusing on psychological framing, strategic targeting, and questions designed to pry open the truth.

This guide will walk you through that strategy. We will deconstruct how to discuss finances without being intrusive, how to spot a franchisee who has been prepped by corporate, and why your most valuable insights will come from the very people you’re tempted to ignore. You will learn to sequence your calls for maximum impact and leverage your findings to turn your Discovery Day from a passive presentation into a strategic negotiation. It’s time to stop being a prospect and start being a reporter on the most important beat of your life: your own investment.

How to Ask “How Much Money Do You Make?” Without Being Rude?

The most pressing question on your mind is also the most taboo. Directly asking “How much money do you make?” is a surefire way to end a productive conversation. An investigative approach requires you to find the back doors to the financial story. Instead of asking for the final number, you gather the data points that allow you to calculate it yourself. This means focusing on proxy metrics—the operational numbers that directly influence profitability.

A great starting point is to ask about the break-even point. A question like, “How many customers or units per week does it take to cover your baseline costs?” is specific, operational, and non-threatening. It reveals the business’s basic financial pressures without asking for personal income. Another powerful technique is to reference the Franchise Disclosure Document (FDD). You can frame it as, “I saw the average revenue in Item 19 is X. Does that feel realistic for a new owner in their first year?” This grounds your question in official data and invites a more honest, contextualized answer.

Finally, you can approach the topic through lifestyle. Questions about financial pressure can be highly revealing. Consider asking, “On a scale of 1-10, how would you rate the daily financial pressure in this business?” This abstracts the question away from hard numbers and into the realm of lived experience. As Lindsay Eldridge, a veteran Nurse Next Door franchisee, suggests, asking about mistakes is also a proxy for financial lessons. Her recommended question, “What’s the biggest mistake you’ve made in the business so far?” often uncovers costly errors, giving you insight into financial pitfalls to avoid.

• Break-Even Point: “How many customers per week does it take to break even?”
• FDD Reference: “The average revenue in Item 19 is listed as [Amount]. Is that realistic for year one?”
• Financial Pressure: “On a scale of 1-10, how would you rate the daily financial pressure?”
• Time to Recoup: “About how long did it take you to recoup your initial franchise fee?”
• Biggest Mistake: “What’s the single biggest financial mistake you’ve made in the business so far?”

By triangulating answers from these different angles, you can build a remarkably accurate financial picture without ever asking for a bank statement. You’re not just getting a number; you’re understanding the financial engine of the business.

Robotic Responses: How to Spot a Franchisee Who Is Coach-Prepped?

Franchisors are in the business of selling franchises. To do this, they often curate a list of “songbirds”—happy, successful owners who are trained to sing the praises of the system. Your job as an investigator is to see past the performance and identify when you’re getting a rehearsed script instead of a real story. The signs are often subtle but become clear once you know what to look for.

The first red flag is an overabundance of jargon and marketing-speak. If the franchisee sounds more like a corporate brochure than a small business owner, be skeptical. Phrases like “leveraging system-wide synergies” or “best-in-class support” are often talking points. A real owner will talk about specific people, actual problems, and tangible situations. They’ll say “Susan from corporate helped me with the new POS system,” not “We benefit from robust operational support.”

As the consulting firm FranChoice points out, this is a common practice:

Many franchisors point prospects toward ‘song birds’ who paint a rosier picture than the system-wide reality. But take each call with a grain of salt…Don’t overreact or give too much credence to a comment from someone who may simply have woken up on the wrong side of the bed.

– FranChoice

Another key indicator is the “problem-free” narrative. No business is without challenges. If a franchisee cannot name a single thing they would change, a recent struggle they overcame, or a point of friction with the franchisor, they are likely not being fully transparent. To break through this, ask questions that require a narrative, not a yes/no answer. Instead of “Are you happy with the marketing support?” ask, “Can you walk me through the last marketing campaign you ran and what the specific results were?” This forces a detailed story that is much harder to script.

Ultimately, your best defense is pattern recognition. A single glowing review can be an outlier, but if you hear the exact same turn of phrase from three different franchisees in three different states, you’ve found the script.

Top Performers vs. Strugglers: Who Should You Call First?

The list of franchisees you receive from the franchisor is not a random sample; it’s a curated marketing asset. A common mistake is to call only the top performers or the owners of the locations nearest to you. A strategic investigator builds a balanced portfolio of sources. Your goal is to create a 360-degree view of the system, which means intentionally speaking with top performers, average owners, and those who are struggling.

To get a statistically relevant picture, volume is key. You cannot base a six-figure investment on two or three conversations. According to seasoned expert Joel Libava, The Franchise King®, franchise validation experts recommend contacting 10-15 existing franchisees during your due diligence process. This sample size is large enough to help you identify patterns and dismiss outliers. Your first calls should be to a mix—perhaps two from the top of the sales charts (if provided), two from the middle, and one who seems to be in a tougher market.

The most important question to ask this mixed group is not about their own performance, but about the system as a whole. FranChoice provides an excellent framework with this question: “What separates higher performers from lower performers in your franchise system?” This is a masterstroke of a question. It allows top performers to articulate the success factors without bragging, and it gives struggling owners a way to discuss systemic challenges or market difficulties without sounding like they are just making excuses. It shifts the focus from an individual’s P&L to the core DNA of the business model. What you are listening for are the common threads in their answers. Do all the top performers mention a specific local marketing tactic the franchisor doesn’t teach? Do all the struggling owners mention a supply chain issue? These patterns are the gold you are digging for.

Don’t just call the stars. The real story of the franchise is often found in the gap between the best and the rest. Your mission is to understand that gap.

The “Just a Complainer” Mistake: Why Bitter Owners Hold the Real Keys

In your calls, you will inevitably encounter a franchisee who is unhappy. They will have a list of complaints about the franchisor, the marketing, the software, or the customers. The temptation is to dismiss this person as a “griper” or someone with a bad attitude—an outlier who isn’t representative of the system. This is a critical error. While chronic complainers do exist, an unhappy franchisee is often your most valuable source of intelligence, provided you can distinguish a legitimate grievance from simple whining.

A legitimate grievance is specific, often tied to the promises made in the FDD or franchise agreement, and is frequently echoed by other franchisees. A griper complains about everything, from the economy to the weather. The key is to listen for patterns, not just volume. One person complaining about a software glitch is an anecdote; three people mentioning the same glitch is a data point about a systemic issue. As FranChoice notes, “It’s invaluable to hear from franchisees who are struggling or have a beef with the franchisor. There’s not a system out there with all of its franchisees in perfect alignment at all times.” These dissenting voices provide the stress test for the franchise model.

To help you separate the signal from the noise, use a framework to analyze the complaints you hear. A legitimate grievance is factual and solution-oriented, while a griper’s complaints are often vague and emotional.

This table, based on expert advice, provides a guide to help you differentiate between a person with a legitimate problem and someone who is simply a perpetual complainer. Using this framework can help you extract valuable, critical information that others might dismiss.

Gripers vs. Legitimate Grievances: How to Tell the Difference

Characteristic	Griper	Legitimate Grievance
Complaint Scope	Everything (customers, economy, weather)	Specific franchise system issues
Documentation	Vague accusations	References to FDD promises or agreements
Pattern	Isolated complainer	Multiple franchisees report same issue
Solutions Offered	None – just complaining	Specific suggestions for improvement
Business Status	Often struggling overall	May be profitable despite issues

Don’t run from the “bitter” owner. They hold the keys to understanding the worst-case scenario. A system that can be profitable even when franchisees have legitimate complaints is a robust system. A system where all the complaints are tied to unprofitability is a major red flag.

When to Call: Why Calling During Busy Hours Gets You Hang-Ups?

Your strategy for who to call and what to ask is useless if you can’t get anyone to actually talk to you. The timing and logistics of your calls are not minor details; they are fundamental to your success. A franchisee is a busy small business owner. Calling them during their lunch rush or peak service hour is disrespectful and will likely result in a rushed, annoyed conversation or an immediate hang-up.

To get a thoughtful, reflective conversation, you must be strategic about when you reach out. The best time to call a franchisee is typically during their slowest period. For a restaurant, this might be between 2 PM and 4 PM. For a B2B service, it might be later in the afternoon on a Friday. Do your homework on the business’s natural rhythms. An introductory email is also a professional courtesy that dramatically increases your chances of a good conversation. A brief message explaining who you are and noting you’ll call in the next day or two sets the stage and shows you value their time.

When you do get them on the phone, be prepared for a substantial conversation. These calls are not quick check-ins. You should plan for a full 45-60 minutes for each validation call. This allows time to build rapport before diving into the tough questions and gives the franchisee space to think and elaborate. To facilitate this, ensure you are in a quiet place with a reliable connection, free from distractions. A call full of background noise or dropped signals is unprofessional and signals that you don’t take this process seriously.

Here are some best practices for call timing and setup:

• Send a brief, professional introductory email before you call.
• Target mid-afternoon lulls (e.g., 2-4 PM) when the owner is less likely to be stressed.
• Block out at least 45-60 minutes for each call to allow for a deep conversation.
• Call from a quiet, private location to eliminate noise and distractions.
• Be open to scheduling a follow-up call if they are busy but willing to talk later.

Respecting a franchisee’s time is the first step in earning their trust. A well-timed, professional approach is the foundation upon which an honest conversation is built.

How to Find and Interview Ex-Franchisees Who Failed?

The most revealing conversations you can have are often with people who are no longer in the system. Ex-franchisees, particularly those who failed or left on bad terms, have no incentive to stick to the corporate script. They can provide an unvarnished look at the system’s weaknesses, the franchisor’s true level of support, and the real-world challenges that the FDD might not capture. Finding them, however, requires some detective work.

Item 20 of the FDD lists franchisees who have left the system in the past year. This is your primary lead list. While some may have left for positive reasons like retirement, this list is your best chance to find those who were unsuccessful. You can also use public records and social media platforms like LinkedIn to search for individuals who list themselves as “former” owners of the franchise in question. This can unearth owners who left more than a year ago and are therefore not listed in the current FDD.

When you reach out, frame your request carefully. Start by acknowledging their past experience and state your purpose clearly: “I’m considering buying a [Franchise Name] franchise and saw you were a former owner. I’m trying to get a complete picture of the business, both the good and the bad, and I was hoping you’d be willing to share your perspective.” The most powerful question you can ask them is simple and open-ended. As senior franchise advisor Mike Silverman recommends, the one question that can unlock hours of insight is: ” Knowing what you know now, would you buy this business again, and why?“

The “why” is the most important part of that question. It forces a justification that will reveal the core issues. As Silverman also explains, these calls are for “validating” what you’ve learned, not for learning basic info. You should be testing hypotheses: “The franchisor plan suggests 90% of leads are generated by corporate marketing. Was that your actual experience?” This is where the plan meets reality, and ex-franchisees are the ultimate arbiters of that reality.

These conversations may be uncomfortable, but they are an essential stress test of your potential investment. The stories of those who failed are often more instructive than the stories of those who succeeded.

Net Promoter Score: How to Move Detractors to Promoters?

As you gather intelligence from your calls, you’ll be inundated with opinions, stories, and data points. To make sense of it all, you need a framework. A powerful mental model is to categorize the franchisees you speak with using the principles of the Net Promoter Score (NPS). While you’re not formally calculating a score, thinking in terms of Promoters, Passives, and Detractors can bring clarity to your findings. The fact that according to franchise development statistics, only 1% of franchise leads actually end up buying a franchise underscores how critical this level of analysis is.

First, let’s define the categories in the context of franchise validation:

• Promoters (Score 9-10): These are your “songbirds.” They are enthusiastic, happy, and will actively praise the system. They are great for understanding the best-case scenario and the potential highs of the business, but their perspective may be overly optimistic.
• Passives (Score 7-8): These franchisees are satisfied but not overly enthusiastic. They see the business as a job that works. They are often your most valuable source for an objective, clear-eyed view of the pros and cons. They’ll tell you what works and what doesn’t without heavy emotion.
• Detractors (Score 0-6): These are your unhappy owners. They have had a negative experience and are at risk of speaking poorly about the brand. They are essential for understanding the system’s biggest weaknesses and potential pitfalls.

Your goal isn’t to “move” detractors to promoters; that’s the franchisor’s job. Your job is to understand *why* the detractors exist. What specific, recurring issues do they raise? Are their complaints about core operational failures, or are they personality conflicts? The table below helps clarify the value each group brings to your investigation.

NPS Categories in Franchise Validation

NPS Category	Score Range	Characteristics	Value for Validation
Promoters	9-10	Enthusiastic supporters	May be overly optimistic
Passives	7-8	Satisfied but not enthusiastic	Most objective and clear-eyed perspectives
Detractors	0-6	Unhappy with system	Reveal system’s biggest weaknesses when fact-checked

A healthy franchise system will have a majority of Promoters and Passives. A system with a significant number of Detractors who all cite the same core problems is a major red flag that your investigation must take seriously.

How to Ace Your Franchise Discovery Day Interview?

After weeks of investigative calls, you have moved beyond the brochure and built a real-world intelligence report on the franchise system. The final step is often “Discovery Day,” where you meet the corporate team. Many candidates treat this as a passive event—a presentation to be watched. This is a mistake. Discovery Day is your opportunity to use the intelligence you’ve gathered. It is the final stage of your interview *with them*, but more importantly, it is their final interview *of you*.

You must walk into Discovery Day positioned not as a hopeful buyer, but as a well-informed, serious business partner who has done their homework. Your questions should reflect the depth of your research. Instead of generic questions, you’ll ask targeted, pattern-based ones. For example: “In my conversations with several franchisees in the Midwest, a recurring theme was a challenge with sourcing local marketing materials. Can you walk me through the current corporate strategy to address that?” This single question demonstrates three critical things: you did the calls, you identified a systemic pattern, and you are thinking strategically about solutions.

This is your chance to observe the leadership team’s reactions. Do they get defensive? Do they acknowledge the issue and detail a plan? Or do they dismiss it? Their non-verbal cues and the dynamics of how the team interacts are as important as their words. You’re not just buying a business model; you’re entering a long-term relationship with these people. Your validation call intelligence is the key to making this day truly count.

By leveraging your investigative work, you transform Discovery Day from a sales pitch into a final, mutual vetting process, ensuring you proceed with the confidence that comes from knowing the ugly truth, not just the beautiful story.