Guide

What questions should I ask a franchisor during the owner call?

Ask owners — not the franchisor’s salespeople — five things: what they actually earn against what Item 7 said it would cost, what surprised them after signing, how hard it is to find and keep crews, whether the franchisor’s support is worth the royalty, and whether they would buy the franchise again knowing what they know now.

Call owners, not the sales team

The most valuable ‘franchisor call’ is really the validation call with existing owners, whom you reach through Item 20. The franchisor will offer a reference list; you can call anyone on the full Item 20 list instead, including franchisees who have left. Aim for a spread — new, established, and gone — not just the happy names.

Money, asked plainly

‘What do you bill in a year, and what falls through to you after crews, royalties and marketing?’ ‘How does that compare to what Item 7 said it would cost to open?’ ‘How long until you drew a real wage?’ Owners are often more candid than any earnings claim, because they have nothing to sell you.

What surprised them

‘What do you know now that you wish you’d known before signing?’ ‘What did the franchisor undersell?’ ‘What’s the hardest part nobody mentioned?’ This is where the real texture of the business comes out.

Crews, support and the franchisor

‘How hard is it to find and keep good crews?’ ‘When you call the franchisor with a problem, do they help — and is the support worth the royalty?’ ‘Have the fees or the rules changed since you joined?’ The last one catches a franchisor that tightens terms after owners are locked in.

The one question that summarises the rest

‘Knowing everything you know now, would you buy this franchise again?’ Ask it of everyone. A pattern of hesitation from otherwise successful owners tells you more than any single complaint. Peregrine builds you the full question set from the specific brand’s FDD, so your calls are targeted rather than generic.