BiggerPockets Money Podcast · Tuesday, September 8, 2026
Alex Sarnack identifies key mistakes made by aspiring franchise buyers, including insufficient due diligence, such as skipping FDD review or validation calls, and underestimating the required time and effort. He stresses that franchising is not passive income and requires dedication, with buyers sometimes focusing too much on glamour over operational realities.
“One of the biggest mistakes is not doing enough due diligence. People get excited about a brand, they see the shiny object, and they jump in without thoroughly vetting the opportunity.”
“This includes skipping the FDD review, not talking to enough existing franchisees, or not understanding the financial realities.”
“Another mistake is underestimating the commitment required. Franchising is not passive income. It requires time, effort, and dedication, especially in the early years.”