Franchise due diligence

Franchise Due diligence

Whether you are seeking to invest into an existing franchise or seeking to set up your own franchise into the market, we can assist you with all professional due diligence along the way.

For Franchisees

 Buying a franchise investment requires due diligence, patience and objectivity, whether you are buying a new first time franchise or an existing franchise resale. After all, virtually all of your assets (savings, retirement accounts, home equity, etc.) as well as ten to twenty-year franchise contract and commercial lease obligations are on the line. Don’t rush and choose wisely.

Usually prospective franchisees come to us with a particular franchise in mind. The first thing we ask is why select that one? Before you buy a franchise you are in a real position of power, before deciding on which franchisor it is good to check out all franchisors and compare schemes. Whatever the franchisor says, they rarely sell a franchise very quickly, so some extra research time spent before you buy could save you a lot more time in the long run.

Once you have decided on which franchise to buy, the following factors should be taken into consideration: –

  • Do your homework
  • Do the figures add up
  • Negotiate on price
  • Negotiate on territory
  • Legal obligations on entering and exiting the franchise

We offer strategic advice and assistance with the implementation of taking on the franchise through our project delivery service.

Our due diligence service provide assistance with the following areas through our centrally managed affiliate team: –

  • Review of franchise documentation
  • Negotiation of terms
  • Financial planning and projections
  • Consultancy and work plan on the business concept including your reasons for selecting the franchise
  • Historical performance and track record of the franchisor
  • Market research
  • Property search services for best location
  • HR recruitment services
  • Exit strategy
  • Expansion programme in territory

We offer the following service:

For Franchisors

The first thing that is needed is to create a successful business model that is unique to what other things are being offered in the industry. The concept does not have to be totally unique, just unique enough to find a niche. Creating a successful franchise is never easy, but there are things that can be done in order to make sure the concept gets off the ground, attracts a following and is ultimately prosperous. While there is never a guarantee of success with any business, there are things that can help promote that success. In order to build a successful franchise, it is necessary for the business owner to understand what those concepts are and repeat them continuously.

Our due diligence service provides assistance with the following areas through our centrally managed affiliate team : –

  • Creation of business model
  • Funding sources
  • Business plan
  • Market research
  • Legal structure and documentation
  • Financial planning and projections
  • Training and written manual
  • HR recruitment

Contact a member of our team to discuss your requirements