BiggerPockets Money Podcast · Tuesday, September 8, 2026
Alex Sarnack outlines the franchise buying process, starting with self-assessment of interests, skills, and finances. This is followed by researching concepts, contacting franchisors, reviewing the Franchise Disclosure Document (FDD), conducting validation calls with existing franchisees, signing the agreement, and finally, undergoing training and onboarding.
“So the first step is, you know, self-assessment. What are your interests, your skills, your financial capacity, your risk tolerance? What are you looking to achieve? Are you looking to replace income, build an empire, side hustle?”
“Once you've identified a few concepts that look promising, the next step is to reach out to the franchisor for more information. This usually involves filling out a candidate profile and then having a discovery call with the franchise development team.”
“The FDD is a legally required document that contains a ton of information about the franchise system. It includes details about the franchisor's history, fees, obligations, financials, existing franchisees, territories, and much more.”
“After you've reviewed the FDD, the next step is typically a validation call with existing franchisees. This is where you get to hear firsthand from people who are already operating the franchise.”