Buying a Franchise: Ultimate Due Diligence Checklist

Are you considering buying a franchise business? 

If so, our ultimate Due Diligence Checklist is a must have. Let us guide you through all of the areas you should assess prior to investing in any business.

Start with our Ultimate Due Diligence Checklist!

When purchasing a business, carrying out due diligence critical. Throughout this due diligence checklist, you will get to carefully consider all aspects of a business for sale.

What is covered in the checklist: 

1. Performance & Financials
2. Equipment Check
3. Customers & Suppliers
4. Staff & Expenditures
5. Location & Premises
6. Existing Owner Evaluation

Let us guide you through 43 points covering essential areas you should assess prior to investing in any business.

Throughout the due diligence process, you will get to carefully consider all aspects of a business for sale. This includes the business operations, financial performance, legal and tax compliance, customers, assets and many other details.

Example of points covered by this checklist:

• Have you contacted and spoken to at least 4 existing franchise owners?
• Did you ascertain the level of certainty that major customers will continue trading after the sale?
• Have you determined if the staff are related to the existing owner and the likelihood of them continuing their employment?
• Have you determined the impact the existing Owner has on the business and whether this can be replicated to retain the existing business?
• If the equipment is leased, check with suppliers to ensure no balloon payments have been included in the lease costs.

If you would like to discuss the pros and cons of franchising, give Peter Fiasco a call on 02 9967 5500 to discuss if franchising is right for you.