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

TruBlue Home Service Ally

TruBlue’s Home Maintenance Plans: Peace of Mind for Homeowners

trublues-home-maintenance-plans-peace-of-mind-for-homeowners

Caring Transitions

Caring Transitions Targets Peoria, Illinois, for Franchise Growth

caring-transitions-targets-peoria-illinois-for-franchise-growth

Caring Transitions Celebrates a Strong Start to 2025 With 19 New Franchise Sales and Momentum-Building Training Events

caring-transitions-celebrates-a-strong-start-to-2025-with-19-new-franchise-sales-and-momentum-building-training-events

Right at Home

Right at Home 30th Anniversary in Home Care with Right at Home Logo

Celebrating 30 Years of Excellence and Future Innovations in Home Care

celebrating-30-years-of-excellence-and-future-innovations-in-home-care

Why TruBlue is the Ideal Franchise for Multi-Unit Owners: Scalable Growth With a Purpose

why-trublue-is-the-ideal-franchise-for-multi-unit-owners-scalable-growth-with-a-purpose

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 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

DoorDash Expansion Could Reshape Delivery and Operations for Franchise Brands - 1851 Franchise

DoorDash Expansion Could Reshape Delivery and Operations for Franchise Brands

doordash-acquistions-deliveroo-sevenrooms

Crumbl Franchise Investment - TSG Consumer Partners -  1851 Franchise

TSG Consumer Partners Takes Minority Stake in Crumbl, Signaling Franchise Growth Potential

crumbl-franchise-investment-tsg-consumer

Yum Brands Reports Strong Q1 Results with Big Boost from Taco Bell

yum-brands-reports-strong-q1-results-with-big-boost-from-taco-bell

QSR: McDonald’s Gains Momentum With Chicken Innovation, Value Deals and Franchisee Support

mcdonalds-franchise-recovery-chicken-strategy-value-deals-2025

The Future of Franchising: Trends and Predictions for 2025 and Beyond

the-future-of-franchising-trends-and-predictions-for-2025-and-beyond

Layoffs Surge to Pandemic-Era Highs, Opening Doors for Franchise Growth

layoffs-surge-to-pandemic-era-highs-opening-doors-for-franchise-growth

Franchisee spotlight image with Randy and Sandy Craft, Children's Lighthouse logo on blue background

The Crafts’ Successful Journey from New Parents to Children’s Lighthouse Franchisees

the-crafts-successful-journey-from-new-parents-to-childrens-lighthouse-franchisees

Franchisee spotlight graphic with photo of Amy Lepke and family and Papa Murphy's logo

After 14 Years as a Stay-At-Home Mom, Amy Lepke Returned to Papa Murphy’s — This Time as an Owner

papa-murphys-franchise-amy-lepke

Franchisee Spotlight with Micki Waters and Papa Murphy's Logo

Work Mom: How Micki Waters Became a Mother Figure to Her Entire Papa Murphy’s Team

work-mom-how-micki-waters-became-a-mother-figure-to-her-entire-papa-murphys-team

District Taco Franchise Costs, Fees, Profit and Data for 2025

franchise-deep-dive-district-tacos-franchise-costs-fees-profit-and-data

Franchisee spotlight image with photo of Robert Trujillo and UWRG logo on blue background

How Robert Trujillo Expanded His Construction Business With UWRG

how-robert-trujillo-expanded-his-construction-business-with-uwrg

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

MORE STORIES LIKE THIS