Due diligence in franchising is the comprehensive research and evaluation process that prospective franchisees undertake before investing in a franchise. This includes reviewing the Franchise Disclosure Document (FDD), speaking with current and former franchisees, understanding financials, analyzing the competitive landscape, and seeking legal or financial advice. Proper due diligence reduces the risk of unexpected challenges and ensures that the franchise opportunity aligns with the candidate’s goals, experience, and investment capacity.
Due Diligence
This term
Due diligence is the research and investigation done before investing in a franchise.
Joe Bailey
Lead Franchise Advisor & Owner
At Franchise Reports, the goal is simple: help you find better franchises.
