1851

Purchasing a franchise might be the most significant investment a buyer will ever make, so performing due diligence will be a hugely important part of the process.&nbsp;Supporting potential franchisees during this time can make or break an investment. It is crucial to be prepared to provide insight, answer questions and offer up advice.For example, you may want to recommend speaking to existing franchisees, conducting market studies, and even hiring real estate brokers before making any decisions, according to&nbsp;<a href="https://www.linkedin.com/in/akashkapoor/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=managing-the-lead-part-3-how-to-support-the-due-diligence-of-franchise-buyers-2720183" target="_blank" rel="nofollow">Akash Kapoor</a>, CEO of Indian fast-casual franchise&nbsp;<a href="https://brands.fransmart.com/curry-up-now/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=managing-the-lead-part-3-how-to-support-the-due-diligence-of-franchise-buyers-2720183" target="_blank" rel="nofollow">Curry Up Now</a>.Here are five ways to support buyers during the due diligence period.&nbsp;<h4>Introduce Them to Current Owners</h4>Talking to current owners is one of the best ways to determine if a franchise is the right fit for a prospective buyer. Speaking to people who are already in business will give them a better picture of what being a franchise owner entails.&nbsp;“We highly recommend [prospective buyers] visit current open locations and speak to the owners about things such as operations, sales, marketing, guests, business prospects and satisfaction with the brand,” said Kapoor.<h4>Recommend Sources&nbsp;</h4>Franchise buyers can look into market research companies that focus on franchise data to help make an informed decision. One of the most widely-used options is&nbsp;Franchise Business Review.&nbsp;Franchise Business Review is a&nbsp;franchise market research firm that performs independent surveys of franchisee satisfaction, employee engagement, franchise buyer experiences and end-customer satisfaction. The firm works with hundreds of franchises to share best practices in franchise relations and operations.&nbsp;<h4>Provide Data</h4>In addition to your Franchise Disclosure Document, be prepared to provide financial statements and data to prospective investors.&nbsp;Additionally, buyers might be interested in historical data and ongoing market trends. Providing these figures is a practical way to show how sustainable of an investment your business will be.&nbsp;&nbsp;<h4>Encourage Speaking to a Real Estate Broker</h4>Buyers may want to consult with a real estate broker during the due diligence process.&nbsp;“A broker will veto the brand and understand and explain if the brand has legs in that market,” Kapoor said. “A good broker will say no as much as yes. Also, since many deals are multi-unit,&nbsp; planning to build a market with a broker helps from a feasibility perspective.”<h4>Be Available</h4>It is important for the franchise leadership team to be available to answer any questions or concerns. Talking to the leadership team will allow the buyer to better understand the company’s vision and business philosophy.&nbsp;Whether during discovery day or a separate phone call, be prepared to answer any questions about the brand and provide a sense of where the organization is heading.&nbsp;

Managing the Lead Part 3: How to Support the Due Diligence of Franchise Buyers

1851 Franchise

Supporting prospective franchisees while they do their homework is key to making a good impression.  

managing-the-lead-part-3-how-to-support-the-due-diligence-of-franchise-buyers

Caring Transitions

Celebrating National Women’s Entrepreneurship Day by Honoring the Women of Caring Transitions

celebrating-national-womens-entrepreneurship-day-by-honoring-the-women-of-caring-transitions

Minuteman Press International

Minuteman Press franchise owners Shane, Carlene, and Steve Brunk, Treasure Coast, FL.

Minuteman Press Franchise Owners Across Florida Build Momentum

minuteman-press-franchise-owners-across-florida-build-momentum

Express Employment Professionals

Express Employment Professionals franchise, people talking in a lobby

Express Employment Eyes Palm Springs as a Hot Market for Franchise Growth

express-employment-palm-springs-coachella-expansion-franchise

Mellow Mushroom

image of mellow mushroom FSR Magazine’s NextGen 25 List of Rising Restaurants To Watch Beyond 2025

Mellow Mushroom Lands on FSR Magazine’s NextGen 25 List of Rising Restaurants To Watch Beyond 2025

mellow-mushroom-fsr-nextgen-25-rising-restaurants-2025

Beansquad

BeanSquad Franchise - What BeanSquad Did for This Amazon DSP Owner’s Books and Bottom Line

What BeanSquad Did for This Amazon DSP Owner’s Books and Bottom Line

beansquad-amazon-dsp-bookkkeeping

Buying a Franchise Masterclass

 Franchise Opportunities

Get Support Buying a Franchise

How to Buy a Franchise White Paper

How to Buy a Franchise

How to Sell Franchises

How to Grow a Franchise

Find a Franchise Supplier

1851 Franchise Opportunities

Franchisor News

Franchisor Power Rankings

FranCamp Mastermind Summit

Franchise Development Website Builder

Franchise Resources

What ALEC-Laffer's Report Means for Franchising

Website Awards

Power Rankings

About 1851

Advertise on 1851

Contact 1851 Editorial

Terms of Use

1851 Login

GROWTH CLUB LOGIN

facebook

instagram

twitter

linkedin

youtube

Jobseekers Are Flocking to “Unglamorous” Jobs — And Home Service Franchises Could Benefit

Jobseekers Are Flocking to “Unglamorous” Jobs — And Home Service Franchises Could Be Poised To Benefit

jobseekers-shift-boosts-home-service-franchises

The future of recovery studios, health and wellness franchise

The Future of Recovery Studios: Why Wellness Franchises Are the Next Fitness Boom

the-wellness-boom-recovery-franchises-future-fitness

Design with government building & "Open for Business" sign against American flag backdrop

Government Reopens After 43-Day Shutdown, Bringing Relief to Small Businesses and Franchises

government-shutdown-ends-franchise-impact

As Starbucks and Dunkin’ Navigate a Changing Market, New Coffee Players Keep Gaining Ground

starbucks-dunkin-franchise-coffee-market-trends

Paris Baguette Welcomes Zac Sulma as New Chief Operating Officer

new-coo-zac-sulma

AI-related job cuts, October U.S. job cuts, American job cut record

AI-Fueled Layoffs Reshape the U.S. Job Market — And Highlight Franchising’s Resilience

ai-job-cuts-franchising-path-forward

Senior Entrepreneurship - Franchising - 1851 Franchise

Senior Entrepreneurship Is Rising — And Franchising Is a Key Outlet

senior-entrepreneurship-franchising-silver-startups

Power Eats: Smoothie King Rolls Out Food Nationwide To Fuel Franchise Growth

smoothie-king-food-menu-power-eats

image of jerome hanway from right at home Las Cruces, New Mexico 1851 franchise franchisee spotlight

Jerome Hanway Is Building His Right at Home Franchise Around His Mission To Serve

Managing the Lead Part 3: How to Support the Due Diligence of Franchise Buyers

MORE STORIES LIKE THIS