Franchise Buying & Due Diligence
Buy a Franchise With Your Eyes Open
About this course
This course takes a complete beginner from never having opened a Franchise Disclosure Document to confidently running the full due-diligence process on a franchise opportunity. You will work through the legal framework set by the FTC Franchise Rule, the structure and meaning of all 23 FDD items, the fees and total-investment math in Items 5 through 7, the obligations and territory protections in Items 8 through 12, the litigation, turnover, and financial-statement red flags in Items 3, 4, 20, and 21, the validation calls that test the Item 19 earnings claim, and a complete investment-and-payback model. Every module is built on the real document, named resources, worked numbers, and the specific questions a buyer asks before risking a life's savings.
Curriculum
Module 1: The Franchise Model and the Disclosure Framework
- What You Are Really Buying in a FranchisePreview
- The FTC Franchise Rule and the 14-Day Disclosure🔒
- The 23 Items: A Map of the Disclosure Document🔒
Module 2: Reading the Money Items: Fees and Total Investment
- Items 5 and 6: Initial and Ongoing Fees🔒
- Item 7: The Estimated Initial Investment🔒
- Items 8 through 12: Obligations, Financing, and Territory🔒
Module 3: Validating Earnings and Reading the Red-Flag Items
- Item 19: The Financial Performance Representation🔒
- Items 3, 4, 20, and 21: Litigation, Turnover, and Financials🔒
- Validation: Calling Franchisees to Test the Claim🔒
Module 4: Territory, Modeling, and the Decision
- Territory and Saturation Analysis🔒
- Building the Total Investment and Break-Even Model🔒
- Professional Review and the Go or No-Go Decision🔒