If you are looking at a franchise opportunity you should read this article from Barry Kurtz on Digging into Franchises: The Due Diligence Minefield. His proposed Legal Due Diligence Checklist within the article is a must read.
The due diligence process is important when buying a franchise (or any business). Kurtz’s article deals more with buying the entire franchise company but the article is helpful even if you are buying a single franchise. I also have multiple articles addressing due diligence issues when buying a franchise including:
- Do Your Homework When Selecting a Franchise;
- Buying a Franchise: Questions to Ask Franchisors;
- Considering a Franchise: Make Sure to Interview Current Franchisees.
Joe Cooney and I have a podcast on Buying a Franchise Basics which also has some helpful hints on franchise due diligence. Joe has some great insight so I recommend a listen.