Buying a US Franchise: How to Interview Franchisees

Speaking to franchisees is one of the most useful checks you can make before buying a US franchise. They can explain how the business works beyond the sales presentation, including what surprised them and which questions they wish they had asked. The aim is not to collect endorsements: it is to test whether everyday experience within the franchise community matches the opportunity you are considering.

Build your own contact list

Start with Item 20 of the Franchise Disclosure Document (FDD), which includes information about outlets and contact details for current and certain former franchisees. Use those contacts rather than relying entirely on owners introduced by the salesperson. Selected references can be helpful, but they may not represent the range of experiences across the network.

Choose people whose circumstances illuminate your proposed purchase. Include newer operators who remember the opening process, established owners who have experienced changes, and franchisees working in markets with similar customer and property conditions. Speak to both single-unit and multi-unit owners where relevant, recognising that their resources and management arrangements may differ.

Former franchisees can provide another perspective. Ask when they left, what their role was and whether the circumstances they describe still apply. Their experience is worth investigating, but it should not automatically be treated as evidence of current practice.

Request a convenient appointment and explain that you are independently assessing a purchase. Do not expect someone to discuss sensitive business matters while serving customers.

Understand what disclosure rules give you

The Federal Trade Commission’s Franchise Rule requires a franchisor to provide its FDD at least 14 calendar days before a prospective franchisee signs a binding agreement with, or makes a payment to, the franchisor or an affiliate in connection with the proposed franchise sale. Use that review period for conversations and follow-up enquiries; do not treat it as a deadline to complete your decision.

The rule provides access to important disclosures, not a guarantee that existing owners will answer your questions. A franchisee may be busy, concerned about confidentiality or simply unwilling to participate. Respect that choice and approach other contacts.

Some states also have franchise registration or disclosure requirements, and some have laws protecting franchisees during the relationship. Ask a US franchise solicitor or attorney which rules apply to your transaction. The federal disclosure framework does not replace that state-specific assessment.

Financial claims require particular care. Item 19 addresses financial performance representations made by the franchisor. A franchisee’s account of their own results is not a substitute for checking the basis, limitations and relevance of any franchisor earnings claim. If the seller points to an owner’s success as evidence of what you will earn, take that statement to your legal adviser.

Ask consistent, experience-based questions

Use the same core questions in each interview so you can compare answers fairly. Ask for examples rather than a simple rating of the brand.

Useful questions include:

• Expectations: What differed most from what you understood before signing?
• Opening: Which stages took longer or required more work than expected?
• Daily operations: What does a normal working week actually involve?
• Problem-solving: When something went wrong, whom did you contact and what happened next?
• Changes: Which changes introduced by the franchisor have helped or made operations harder?
• Preparation: What would you investigate more carefully if buying today?
• Overall judgement: Would you make the same purchase again, and why?

Follow broad answers with questions about timing and context. “Support was poor” becomes more useful when you establish what help was requested, when it was requested and how the franchisor responded.

If an owner volunteers financial information, clarify whether they mean revenue, operating profit or money available after debt payments and owner remuneration. Do not pressure them to disclose private accounts. Record the period and circumstances rather than treating an informal figure as a forecast for your location.

Turn conversations into verifiable checks

Keep a comparison sheet showing each interviewee’s operating history, market type, main observations and unresolved questions. Obtain permission before recording any conversation; recording laws vary between states.

Look for recurring themes, but distinguish repeated evidence from repeated opinion. Several owners describing the same unresolved process problem deserves investigation. One unusually successful or dissatisfied owner should not determine the purchase alone.

Put significant discrepancies to the franchisor in neutral terms and request a documented explanation. Ask your advisers whether the response is consistent with the FDD and agreement. Friendly assurances from an existing owner do not amend your contract or establish what support you are entitled to receive.

Practical takeaway: Select your own interviewees, ask consistent questions and verify the important answers. Franchisee conversations should produce a clearer list of checks to resolve before signing—not merely reassurance that buying feels right.