Choosing a franchise is one of the most important business decisions you’ll ever make. In this episode of Ownership Essentials, Scott Elliott speaks with Sabrina Wall, CEO of the Franchise Brokers Association, about how to evaluate franchise opportunities that are built to last.
Understanding alignment before the numbers
Sabrina explains that success in franchising often starts with cultural fit. Many buyers focus only on the financials and investment range, but the most sustainable partnerships come from shared values between franchisee and franchisor. Just like a long-term marriage, alignment on philosophy and communication determines how both sides handle challenges when they arise.
What to look for in leadership and support
A franchise’s culture starts with its leadership team. Review the Franchise Disclosure Document (FDD) for experience, track record, and retention rates. High turnover among franchisees can indicate weak support, while consistent growth shows the system is working. During your research, ask how the franchisor handles adversity. Brands that step up to help struggling owners often demonstrate the stability you want behind your investment.
Making the most of validation calls
Validation—speaking with current franchise owners—is one of the most valuable steps in due diligence. Sabrina advises preparing financial projections ahead of time and asking owners if your numbers align with their experience. This approach opens a comfortable, professional conversation about performance. Ask about systems, marketing, and how well the tools and technology help them succeed. Listen for consistency across multiple owners; when many say “follow the system and it works,” that’s a positive sign.
Spotting red flags before you buy
Common red flags include excessive fees, poor communication, and unclear timelines to profitability. Always read the footnotes in Item 19 to understand what’s included in the reported data. Work with a franchise attorney who specializes in FDD and Franchise Agreement review; they can flag contract terms that could expose you to risk.
Evaluating early-stage brands
Emerging franchise brands can be strong opportunities when they have proven their model in several company-run locations and built solid infrastructure. Caution is warranted when a new franchisor expands too quickly without enough qualified staff to support new owners. Look for a balance between growth and operational readiness.
Preparing for the future of franchising
AI and technology are reshaping how franchises operate. The best systems use AI to improve efficiency while keeping a strong human touch at the local level. Sabrina emphasizes that people still buy from people. Franchises that embrace innovation but remain customer-focused will thrive in the years ahead.
One lasting piece of advice
Sabrina’s final recommendation is to favor recurring revenue models. Businesses with repeat customers—whether subscriptions, memberships, or ongoing services—provide more stability, easier management, and stronger resale value.
The takeaway
Choosing the right franchise goes far beyond numbers. It’s about people, culture, and systems that support success over the long term. By aligning your values with the right team and doing careful due diligence, you can invest with confidence in a business built to last.