Define the objective
A franchise provides a defined system but also creates fees, operating requirements and dependence on the franchisor.
- Write the desired outcome
- Set financial limits
- Identify deal breakers
Verify the evidence
Review financial, legal, tax, customer, employee, operational and technology information. Test important claims independently.
- Study the disclosure document
- Interview current and former owners
- Review renewal and exit terms
Plan the decision and transition
Compare complete terms, downside scenarios, responsibilities and post closing requirements before committing.
- Use independent advisers
- Document material decisions
- Prepare a transition plan