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Evaluating & Buying a Franchise
Turning interest into a sound decision — disciplined due diligence, validation, financing, and the contract terms that bind you for years.
How to Evaluate a Franchise Opportunity
Evaluating a franchise is an underwriting exercise, not a leap of faith. This guide walks through setting your own criteria, working the FDD, scrutinizing the franchisor, testing the market, and modeling the numbers before you sign.
Validation: Talking to Existing Franchisees
Validation, the practice of calling existing and former franchisees, is the most valuable due-diligence step available to a prospective buyer. This guide explains who to call, what to ask, and how to read the answers for patterns rather than anecdotes.
The Total Investment & How Franchises Are Financed
The franchise fee is rarely the number that matters. This guide breaks down the Item 7 total investment range, the working-capital trap that sinks underfunded units, the common ways franchisees fund a purchase, and what lenders look for.
Territory, Renewal & Transfer: Contract Terms to Understand
The FDD discloses, but the franchise agreement binds, often for a decade or more. This guide explains term length, territory and encroachment, renewal, transfer, termination, and dispute resolution, and why an experienced franchise attorney matters.