For the Franchisor, it is evidence that the Franchisee Unit is successful.
For the prospective Franchise Buyer, it is evidence that the Franchise Disclosure Document (FDD) and the Franchise Sales Team have accurately represented the Franchise opportunity.
In Dr. Needham’s book, Solving The Puzzle Of Owning A Franchise – Stop Renting Your Life And Own It Instead, he shares with the prospective Franchise Buyer how to ask “Validation Questions” of the Franchisor and existing Franchisees.
When a person buys a Franchise, they are looking for three things:
- A proven Brand
- A proven Business System
- A proven Training System
Validation Questions help the prospective Franchisee to discover where the Franchisor is in this process and the likelihood of success. While there are no guarantees in business, buying a Franchise from a Validated Franchisor is a key step in increasing your chances for success.