The 5 Questions You Must Ask Before Signing

Here's something most people don't know: every FDD includes a list of current franchisees: their names, locations, and phone numbers. You are allowed to call them. You should call them.

"I've been doing institutional due diligence for 20 years. The most valuable information never comes from the documents. It comes from the people already living the decision you're about to make. Call at least 10."

The five questions

Question 1: "Would you sign again, knowing what you know now?"
Listen carefully to the hesitation before the answer, not just the answer itself. A confident "absolutely" is different from a reluctant "I think so."

Question 2: "What does your average week actually look like?"
Some franchise owners work 30 hours a week. Some work 70. The FDD won't tell you this. A current franchisee will.

Question 3: "How responsive is the franchisor when you have a problem?"
A franchisor who shows up in person when something goes wrong is a very different partner than one who points you to a help desk.

Question 4: "What do you wish you had known before you signed?"
Open-ended. Give them room to talk. The answers here are often the most honest.

Question 5: "Are your actual numbers close to what Item 19 suggested?"
Most franchisees will tell you the truth if you ask respectfully.

One more thing

Also call franchisees who left the system. Item 20 of the FDD lists former franchisees. Call two or three. Find out why they left. That conversation will tell you things no current franchisee will.