If you’re thinking about buying a particular franchise, you should consider speaking with current franchise owners in the same space. A few reasons why you would want to contact a franchise owner include:
- Gather Insights – Direct communication with franchise owners will give you unique observations about the business’s operations, challenges and opportunities, market dynamics, and more. These insights are key to helping you make an informed decision.
- Investment Opportunity – Speaking with a franchise owner can provide firsthand knowledge on the franchise. This includes information on the franchise’s financial performance, costs, and support and training provided by the franchisor. All of this is valuable information that potential investors might need to know.
- Partnership Possibility – Building a relationship with existing franchise owners could open valuable opportunities. These include joint ventures, mentorship relationships, and building a network of support among other franchisees. This can help set you up for success as a franchise owner.
Contacting existing franchise owners is not a complicated process. However, there are various aspects to consider when deciding who to speak with and how to reach out.
Step-by-Step Approach to Contacting a Franchise Owner
Here are the basic steps to take when deciding which franchises to pursue and which franchise owners to speak with.
#1 – Identifying the Right Franchise and Owner
- Define Your Goals and Interests – Of course, any franchise you join will need to line up with your financial goals, including your investment capacity and expected return on investment (ROI). However, you also want to find a franchise that aligns with your personal interests, skills, and experience as this will increase the likelihood of success.
- Evaluate Franchise Options – While your options are not limited to these franchise industries, a few common ones include food and beverage, retail, healthcare, health and wellness, home services, and fitness. Whichever direction you choose, you should research various industries to understand their growth potential and stability. You’ll also gain valuable insights if you read reviews and testimonials from current and former franchisees to gauge their satisfaction levels and potential red flags.
- Shortlist Potential Franchises – If you’ve defined your goals, interests, and financial capacity, then you should be able to narrow down a list of potential franchises you’d like to join. You can utilize various directories to find franchises that match your criteria.
#2 – Getting Contact Information (Top 3 Strategies)
- Directories – There are various online directories that compile comprehensive lists of franchise opportunities across various industries. For example, FranNet has a directory of hundreds of verified brands they can help connect you with. Directories will often include detailed profiles, liquid capital and net worth requirements, and a way to contact the appropriate franchise representatives. Browsing these directories will help you identify franchises that align with your interests and get you connected with franchise owners.
- LinkedIn – This is an invaluable tool that helps you connect with franchise owners. Its search features allow you to search by job title or company name. You can join industry-specific groups and discussions as another way to “meet” franchise owners.
- FDDs (Franchise Disclosure Document) – The FDD is a legal document franchisors are required to provide to potential franchisees in the United States and various provinces in Canada. The FDD includes information about the franchise system, which includes a list of current franchisees and their contact information. This is a great way to connect with franchise owners directly while evaluating the information provided to make an informed-decision.
#3 – Utilize Franchise Directories and Services
We already mentioned that FranNet has a directory with hundreds of verified franchise brands to consider, but our services don’t end there. We also have a team of expert franchise consultants that help aspiring franchisees find the perfect franchise that matches their interests, goals, and experience. We’ll take all the work out of the entire process of contacting a franchise owner. Once you’ve been matched with potential franchises to join, you will be able to speak with individual franchise owners.
Checklist: 46 Questions to Ask a Franchise Owner Before Investing
Use the following questions to guide conversations with current and former franchise owners before investing in a franchise. Their firsthand experiences can help you better understand startup costs, ongoing support, daily operations, profitability, and potential challenges.
1. Startup Costs and Financial Expectations
Understanding the actual cost of opening and operating a franchise can help you determine whether the investment fits your budget.
- What was your total initial investment, including the franchise fee, equipment, inventory, real estate, and other startup expenses?
- Did you encounter any unexpected costs during setup or your first year of operations?
- How much additional working capital did you need before the business became financially sustainable?
- How long did it take for your revenue to cover your operating expenses?
- How long did it take before you could consistently pay yourself?
- How closely did your actual financial performance match your initial expectations?
- What ongoing expenses have the greatest impact on your profitability, including royalties, advertising fees, payroll, and supplies?
2. Training and Ongoing Support
A franchise’s training and support can significantly influence the owner’s experience, particularly when entering an unfamiliar industry.
- How effective was the initial training in preparing you to operate the business?
- Did the franchisor provide sufficient support during the opening process?
- What ongoing training, mentoring, and operational guidance do you receive?
- How responsive is the franchisor when you need help solving a problem?
- Who is your primary point of contact, and how accessible are they?
- Does the franchisor provide useful marketing materials, business tools, and operational resources?
- What additional support would have made your first year easier?
3. Day-to-Day Operations and Work-Life Balance
Understanding the daily responsibilities of franchise ownership can help you determine whether the business fits your lifestyle and expectations.
- What does a typical day or week look like as a franchise owner?
- How many hours do you personally work each week?
- How involved are you in daily operations, staffing, sales, and customer service?
- How difficult has it been to recruit, train, and retain employees?
- How much flexibility do you have to manage the business around personal or family commitments?
- What operational challenges take up the most time or require the most attention?
4. Marketing, Customers, and Competition
A recognizable brand can offer advantages, but local demand, competition, and marketing execution also affect business performance.
- How effective are the franchisor’s national or systemwide marketing efforts?
- What local marketing activities are you responsible for, and how much do they cost?
- How difficult was it to attract your first customers?
- How do you differentiate your business from local competitors?
- Does the franchisor provide enough flexibility to address the needs of your local market?
- Have changes in market demand, competition, or customer behavior affected your business?
5. Franchisor Relationship and Business Restrictions
Franchise owners operate within a defined system. Ask about the relationship with the franchisor and how its requirements affect business decisions.
- How would you describe your overall relationship with the franchisor?
- Does the franchisor listen to franchisee feedback and incorporate suggestions when appropriate?
- Have you experienced disagreements with the franchisor? If so, how were they resolved?
- Are the required products, services, and approved suppliers reliable and reasonably priced?
- Do royalty payments, advertising contributions, or other contractual obligations create unexpected financial pressure?
- Do you feel you have enough flexibility to manage your business while meeting franchise requirements?
- Are there any restrictions or contractual obligations you wish you had better understood before signing?
6. Growth, Profitability, and Long-Term Potential
These questions can help you understand the business’s potential while recognizing that results vary by owner, location, and market conditions.
- What factors have contributed most to your business’s success or challenges?
- How does your actual experience compare with the financial expectations you had before investing?
- What would you do differently if you were starting the business again?
- Does the franchise offer realistic opportunities to expand into additional territories or locations?
- How confident are you in the franchise’s long-term market demand and competitive position?
- Would you invest in this franchise again, knowing what you know now? Why or why not?
7. Questions Specifically for Former Franchise Owners
- Speaking with former franchisees can reveal challenges that may not come up in conversations with current owners.
- Why did you leave the franchise system?
- Was your departure voluntary, or did contractual or financial circumstances contribute to it?
- Did the actual costs, workload, or financial performance differ from what you expected?
- How would you describe the support you received from the franchisor?
- Were there recurring challenges that you struggled to resolve?
- Were you able to sell or transfer your business on acceptable terms?
- What advice would you give someone considering investing in this franchise?
How to Use This Checklist
You do not need to ask every question during a single conversation. Choose the questions most relevant to your priorities, take notes, and look for patterns across multiple interviews.
Whenever possible, speak with a mix of newer franchisees, experienced owners, and former franchisees. Compare their feedback with the Franchise Disclosure Document (FDD), particularly Item 20, which provides information about outlet changes and contact details for certain current and former franchisees.
Remember that individual experiences are not guarantees of future results. Use these conversations alongside independent financial, legal, and market research before making an investment decision.
Looking to Contact a Franchise Owner?
If you’re ready to start the process of finding a franchise and speaking with other franchise owners, then FranNet is here to help. We will do the research needed to find the right franchise for you. Schedule your free consultation today to get started!