Franchise opportunities can be a lucrative option for entrepreneurs looking to start their own business. However, it’s important to do your due diligence before investing in a franchise. One way to do this is through franchise validation calls.
A franchise validation call is a conversation between a prospective franchisee and an existing franchisee of the same franchise system. The purpose of the call is for the prospective franchisee to ask questions and gain insights into the day-to-day operations of the business, the support provided by the franchisor, and the overall success of the business.
When making a franchise validation call, it’s important to be prepared with a list of questions. These questions should cover topics such as the:
- Initial investment
- Ongoing costs
- Marketing support
- Training programs
- Any challenges or successes the franchisee has experienced
One of the benefits of franchise validation calls is the opportunity to hear directly from someone who has experience with the franchise. This allows the prospective franchisee to gain insights that they may not have otherwise been able to obtain through research alone.
For example, a franchisee may have experience with a particular marketing strategy or may be able to provide insights into the level of support provided by the franchisor. This information can be invaluable in helping the prospective franchisee make an informed decision.
Another benefit of franchise validation calls is the opportunity to ask questions about the franchisee’s personal experience. This can include questions about their daily routine, the level of work-life balance they are able to maintain, and any challenges they have faced as a franchisee.
By speaking with an existing franchisee, the prospective business owner can gain a better understanding of what it takes to succeed as a franchisee. This can help them determine if the franchise is the right fit for their personal and professional goals.
It’s important to note that franchise validation calls are just one part of the due diligence process. Prospective franchisees should also review the franchise disclosure document, speak with a franchise attorney, and conduct their own research on the franchise and the industry.
In addition, franchise validation calls should be conducted with multiple franchisees to gain a broader perspective. It’s important to speak with franchisees who are at different stages in their franchise journey and who may be located in different geographic areas. Contact Kate to get help with this.
Franchise validation calls can be a valuable tool in helping prospective franchisees make an informed decision. By speaking with existing franchisees, prospective franchisees can gain insights into the day-to-day operations of the franchise, the support provided by the franchisor, and the overall success of the franchise. However, it’s important to conduct multiple validation calls and to use this information in conjunction with other due diligence activities.