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Due Diligence

What Due Diligence Is

Due diligence is the comprehensive investigation of a franchise opportunity before committing to it. The goal is to assess risks, costs, and potential returns.

Key Steps in Due Diligence

Review the FDD carefully
Conduct validation interviews with franchisees
Analyze financial statements and projections
Evaluate your own finances and financing options
Consult a franchise attorney and accountant
Visit corporate headquarters or existing locations

Why Due Diligence Matters

Thorough due diligence reduces risk, helps you understand the system’s challenges, and ensures you make a confident investment decision.

Legal Disclaimer

This information is for general educational purposes only and is not financial, legal, or investment advice. Always consult qualified professionals before making a franchise investment.

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