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Doing Your Due Diligence

  1. Due diligence means research, research, and more research!
  2. Examine the offering circular closely. All research you've previously done is invaluable in knowing what to look for and what questions to ask.
  3. 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.
  4. Make a record of ALL conversations with the franchisor including date, time, and person talked to, promises, questions and their answers
  5. Franchisors are required by law to disclose any litigation: ask and research.
  6. 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.
  7. Give both your accountant and attorney a copy of your notes (keep originals for your files).
  8. And don’t forget . . . the AAFD Franchise Self Evaluation Tool is now FREE with your AAFD membership.

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