Business Franchise Australia

DUE DILLIGENCE YES OR NO ?

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.

 

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.

dtbanfield@gmail.com