There continues to be a myth surrounding the need, or otherwise, for due diligence when acquiring a franchise. The assumption being that the franchisor has done all the required due diligence regarding site, product, service etc. and, as such, all that a potential franchisee needs to do is to walk into the franchise and commence operations. The second assumption that often goes with that, is that acquiring a franchise is a guaranteed passport to a successful and profitable business.
While the latter is certainly true in the majority of cases, there are always instances where it does not work according to plan. When a franchise does not work according to plan, then invariably the background will show that probably the franchisee was not suited to the business.
Due Diligence - Yes or No?
David Banfield has spent several decades engaged in the franchise industry, most recently as President of a multi-national brand. Currently he is working with emerging brands, providing marketing and growth guidance.
