Buying a US Franchise: How to Interview Franchisees

A franchisor’s presentation shows how its business is supposed to work. Conversations with current and former franchisees help you discover what happens in practice. Before joining the US franchising community, use these interviews to test the brand’s support, understand day-to-day demands and identify questions that need written answers before you commit.

1. Build your contact list from FDD Item 20

Start with Item 20 of the Franchise Disclosure Document (FDD), which covers outlets and franchisee information. It includes tables showing changes in the network and contact information for current franchisees and certain former franchisees. Read the tables alongside the contact lists: openings alone do not tell you whether existing owners are staying, transferring their businesses or leaving.

Do not rely solely on introductions arranged by the sales team. Those owners may offer useful insights, but they are not necessarily representative. Select people independently, including:

• Recent starters who remember training and opening difficulties.
• Established owners who have experienced ongoing support.
• Owners operating businesses similar to your proposed format.
• Owners in comparable locations, with similar staffing needs.
• Former franchisees who can explain why they left.

A transfer does not automatically mean failure, and a closure does not establish misconduct. Treat unusual patterns as reasons to investigate, not conclusions.

Contact owners respectfully. Explain that you are evaluating the brand, ask for a convenient appointment and make clear that you are not seeking customer information or confidential documents. Keep a record of whom you approached, including unanswered requests.

2. Use your disclosure rights to create time for checks

The Federal Trade Commission’s Franchise Rule generally requires the franchisor to provide the FDD at least 14 calendar days before you sign a binding agreement with, or make a payment to, the franchisor or its affiliate in connection with the proposed franchise sale. This is a pre-sale review period, not a general right to cancel after signing.

Keep the complete document and record when you received it. Ensure the receipt date is accurate. Do not treat the minimum waiting period as a deadline for completing your investigation: ask for more time if interviews or professional reviews remain unfinished.

State requirements may add protections. For example, New York’s Franchise Sales Act generally requires registration of franchise offerings unless an exemption applies. Its disclosure requirements include delivery at least 10 business days before signing a binding agreement or paying consideration, with additional timing requirements potentially relevant. Have a US franchise lawyer confirm which federal and state requirements apply to your transaction.

Registration is not a government recommendation of the investment. Equally, the federal disclosure rule does not guarantee that the business will succeed or that every owner receives satisfactory support.

3. Ask consistent questions about operating reality

Use the same core questions in each interview so that you can compare experiences. Begin with context: when the owner joined, whether they manage the business personally and how many locations they operate. A multi-location owner with an experienced management team may need very different support from a first-time buyer.

Focus on practical delivery rather than general satisfaction:

• Training: What did it prepare you to do, and what did you still have to learn after opening?
• Opening support: Who helped with recruitment, equipment and launch planning? Which delays were avoidable?
• Ongoing assistance: When you raise an operational problem, who responds and how useful is the help?
• Purchasing: Are required products reliably available? What happens when an approved supplier cannot deliver?
• Technology: Are the systems dependable, and how are updates introduced?
• Working life: Which tasks take more time than expected? Can the business run during your absence?
• Communication: How does the franchisor consult owners before introducing operational changes?

Ask for specific examples: “Tell me about the last time you needed urgent help” is more informative than “Is support good?”

For former owners, ask why they left, whether selling or closing presented difficulties, and what they would investigate differently today. They may be unable or unwilling to discuss some matters. Respect that boundary; silence alone proves nothing.

4. Turn interview findings into buying conditions

After each conversation, separate facts, opinions and unresolved questions. Record the date and relevant operating context. Avoid recording calls without checking applicable consent laws and obtaining permission.

Look for repeated patterns across independent conversations. One difficult opening may reflect local circumstances; repeated reports of unavailable launch support deserve closer examination.

Compare the findings with Item 11, which describes franchisor assistance and training, and the proposed agreement. If owners report support that matters to your decision, ask your lawyer whether that support is contractually promised or discretionary. Request written clarification from the franchisor about significant discrepancies.

Practical takeaway: Do not buy on enthusiasm alone. Use independent franchisee interviews to produce a short list of unresolved issues, then pause signing until the important questions have credible answers.