Evaluate Your Selection
Doing Your Due Diligence
- Due diligence means research, research, and more research!
- Examine the offering circular closely. All research you've previously done is invaluable in knowing what to look for and what questions to ask.
- Research start-up costs and suppliers. Review a summary of all the franchisor agrees to provide including training. Make sure you fully under your site or territorial rights and perform a business and financial investigation of the franchise and its owners, as well as your competitors.
- Make a record of ALL conversations with the franchisor including date, time, and person talked to, promises, questions and their answers
- Franchisors are required by law to disclose any litigation: ask and research.
- Use your "success team," including an AAFD referral to a LegaLine lawyer and FinanciaLine accountant for an "Franchise Opportunity Review" i.e., to review the offering circular with you.
- Give both your accountant and attorney a copy of your notes (keep originals for your files).
- And don’t forget . . . the AAFD Franchise Self Evaluation Tool is now FREE with your AAFD membership.