Learn how to research buying a franchise the right way. This guide walks you through due diligence, key steps and how to get started with confidence.
You wouldn’t buy a house after one showing – yet many people make six-figure franchise decisions after a single discovery call.
If you’re thinking about leaving your 9-5 to start a business, franchising can be your life-changing path forward. But here’s the truth: successful franchise ownership doesn’t start with a contract or a catchy brand story – it starts with real research and asking the right questions.
The right research helps you make confident, informed choices that protect your time, your money and your future. Whether you’re brand new to franchising or just starting to explore, this franchise research guide will walk you through how to evaluate opportunities like an owner, not a shopper.
Step one: Know what you’re actually looking for
Before diving into brands or business models, start with you.
Ask yourself:
What are my goals – income, flexibility, lifestyle or long-term wealth?
What skills and experience do I bring to the table?
How much risk am I willing to take on?
What kind of work energizes me (and what drains me)?
The best franchise for you isn’t necessarily the one with the most awards or the biggest name – it’s the one that fits your goals and your gut.
Take time to clarify what freedom means to you. Is it more family time? The ability to work on your own schedule? A business that grows beyond you? Knowing what you’re really chasing will shape every research decision that follows.
Step two: Look beyond the marketing materials
The honest truth? Most franchise websites are designed to sell, not inform. You’ll see plenty of glowing testimonials and “best franchise” awards – but not always the full picture.
To get a more honest view:
Compare information across multiple sources (not just the brand’s site).
Check for verified or independent franchise data.
Read real owner feedback – not just the curated reviews the brand provides.
Ask yourself, “Is this information transparent and unbiased?"
When every brand claims to be the best, your job is to ask: “According to whom?”
Remember, research isn’t about avoiding sales pitches – it’s about reading between the lines and looking for signs of long-term support, culture and owner satisfaction.
Step three: Learn how to read the FDD (without falling asleep)
The Franchise Disclosure Document is where the legal and financial details live – but don’t worry, you don’t need a law degree to understand the basics.
Here’s where to focus:
Item 7: Initial investment breakdown – startup costs, fees and working capital.
Item 19: Financial performance representations – what franchisees might earn. (Note: this section is optional and often selective.)
Item 20: System growth and turnover – how many locations have opened or closed.
The FDD gives you facts, but not always context. For example, a strong Item 19 doesn’t tell you how consistent those numbers are, and Item 20 might show turnover that signals red flags.
Think of the FDD as your starting point – not your full picture. The real truth comes from what current franchisees and unbiased advisors reveal behind the numbers.
Step four: Talk to franchise owners and listen for what’s not said
The most valuable research doesn’t happen online – it happens in conversation. When you speak with franchise owners, ask open-ended questions like:
“What surprised you most after opening?”
“If you could go back, what would you do differently?”
“How supportive is the franchisor day to day?”
Try to meet with a mix of new and experienced franchisees. And don’t just rely on the list of references the brand provides – reach out to owners on your own for a more authentic view.
“The support system we have just within the franchisees is unbelievable,” said Greg Allen, Cabinet IQ franchisee. “Having that community has been a lifesaver for me, because I ask a lot of questions. They’ve helped me out a ton.”
Pay attention to not only what they say, but how they say it. Hesitations, tone or quick changes of subject can reveal just as much as the words themselves. The best insights come from the conversations that aren’t scripted.
Step five: Seek transparency, not just information
Great research isn’t about collecting piles of data – it’s about understanding what’s real.
True transparency means seeing the whole picture: financial, cultural and operational. That’s why tools, advisors and research partners who provide verified, side-by-side comparisons are so valuable.
Franchise research isn’t about finding perfect data – it’s about finding honest data.
You deserve to make decisions with confidence, not guesswork. And the more you understand before you invest, the smoother your path to business ownership will be.
Research like an owner, not a shopper
Buying a franchise is one of the biggest investments you’ll ever make – but it doesn’t have to feel like a gamble. The best protection you have is information you can trust.
If you’d like a second opinion or help with starting your franchise research, our team can help. Our advisors guide you through every step – from evaluating brands and reviewing FDDs to connecting you with franchise owners. No pressure, no sales pitches – just clarity, simplicity and support.
People don’t come to us because they “want a franchise.” They come to us because they want what a franchise can do for their life:
- Freedom from the 9-5 grind
A way to build wealth
A meaningful path forward that doesn’t feel like a risk - If that sounds like the kind of future you’re chasing, we’d love to help you find it.
Talk to a Franchise Advisor today, and take the first step toward living life on your own terms.
Still not sure where to start? Review these franchise research FAQs
How do I start researching a franchise?
Start by defining your personal and financial goals. Then, research brands that fit your skills and lifestyle.
What are the first steps in franchise due diligence?
Focus on verifying financial data (Item 19) in the FDD, comparing multiple sources of information and evaluating brand culture and support. Never rely on marketing materials alone.
What should I look for in a franchise opportunity?
Look for alignment between your goals and the brand’s model, strong franchisee satisfaction, transparent communication and proven systems for support and scalability.
How can Sidekick help me research franchises?
Sidekick advisors help to simplify the process by narrowing down top-performing, verified brands that fit your goals – reducing risk and helping you make confident decisions.
