Franchise Due Diligence: A 12-Point Checklist Before You Commit

It's the research you do before committing — verifying the company's registration and finances, the real numbers per outlet, the contract terms, and the experience of existing franchisees. It's how you separate a solid opportunity from a costly mistake.

Company registration and financials, total real investment, median net profit per outlet, all fees, contract terms (territory, exit, sourcing), and honest interviews with existing franchisees — plus a weekday visit to a real outlet.

Pressure to sign immediately, hidden or best-case-only numbers, no access to existing franchisees, a brand that pushes selling franchises over making outlets profitable, and closing outlets. Any of these warrants deeper checking before you pay.