The Franchise King raises some excellent points for prospective franchisees involving the thought process and "sequence of steps" that franchisees must undertake when making a franchise investment and evaluating franchise litigation. While the Franchise King provides prospective franchisees with solid advice respecting the significant role of engaging an experienced franchise lawyer to review your franchise agreement‚ he also offers the critical and practical advice that prior to hiring any attorney or making any commitment‚ a prospective franchisee must undertake his or her own "business" due diligence respecting the franchise opportunity being considered. So‚ before buying a franchise:
Step 1: "Do your research on the franchise or franchises that you're thinking of buying"
Step 2: After you have completed your business due diligence‚ hire an experienced franchise lawyer to evaluate and review your franchise agreements;
Step 3: After you have completed steps 1 and 2 then‚ and only then‚ should you consider signing the franchise agreement. Keep in mind that‚ sometimes‚ the best decision may be to walk away from a proposed transaction. There are many franchise opportunities out there – find the solid investment and be circumspect of all others.
The Franchise King offers some excellent advice about researching a franchise investment. What is my position about the role of a franchise lawyer and the timing of the due diligence process? Business Due diligence First‚ Legal Due Diligence Second and Final Decision Third.