Wealth Creation Tip: Don’t Skip This Step in Franchise Research

Hire Yourself Podcast with Pete Gilfillan

Pete Gilfillan breaks down one of the most powerful steps in the franchise discovery process: validation. In this episode, Pete walks through how to speak directly with current franchisees, ask the right questions, and uncover the absolute truth about a franchise’s performance, culture, and potential for success.

In this episode, Pete discusses:

• Why Validation Matters Most
   Validation is the most critical step in evaluating a franchise. It’s your opportunity to speak one-on-one with existing franchisees—without the franchisor present—and ask the questions that truly matter.
• How to Build Rapport Before Asking Financial Questions
   Pete emphasizes the importance of earning trust before diving into finances. Start by asking about their journey, then move into operational and support questions before asking about revenue, margins, or profitability.
• Using the Ladder Approach to Speak with a Range of Owners
   From top performers to struggling franchisees, Pete teaches you how to methodically identify and speak with franchisees across the performance spectrum to get a complete picture.
• The Two Time-Based Validation Ranges
   Pete suggests connecting with franchisees at different stages: just starting, one year in, and several years in, to understand the evolution of both the business model and the franchisor’s support over time.

Key Takeaways:

• Be Persistent and Polite
   Franchisees are busy—follow up respectfully and ask the franchise development team for help if needed.
• Ask the Right 10 Questions
   Prepare a template with your top 10 must-ask questions and document responses to inform your final decision.
• Validation is a Contact Sport
   Get on the phone, build connections, and don’t be afraid to ask detailed questions—as long as you’ve earned the right to do so.

"Validation is your chance to find out if franchisees are happy and making money—ask the right questions and you'll get the real story." — Pete Gilfillan

CONNECT WITH PETE GILFILLAN:

LinkedIn: https://www.linkedin.com/in/petegilfillan/
Website: https://www.hireyourself.com/

CONNECT WITH HIRE YOURSELF PODCAST:

Website: https://www.hireyourself.com/podcast
Apple: https://podcasts.apple.com/us/podcast/the-hire-yourself-podcast/id1472038217
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Email: info@hireyourself.com