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Making the Franchise Decision


Great advice.

To assist prospective franchisees in reviewing a franchisor, the International Franchise Association publishes a 94 page workbook called Making the Franchise Decision. The workbook contains questions that a prospective franchisee should ask in conducting their due diligence prior to investing in a franchise and is free to download. It is a very effective tool for every prospective franchisee to use in evaluating and comparing franchisors.

The workbook has places below each question for the franchisee to write information so that they are not relying on their memory and allows them to capture the information at the time they get it. When they meet with their lawyers they can share the information to assist the lawyer in evaluating the FDD and the franchise system. It will probably save the lawyer some time in assisting their client and can reduce the legal fees while providing additional information about what was promised by the franchisor and by whom.

That is very useful as the promises made by the franchisor can be recorded when they are made and the lawyer can then check to see if those promises are contained in the FDD. If they are not and they are important to their client the lawyer can then address them with the franchisor before allowing their client to sign the agreement or any waivers.

This should tone down the franchisee's excitement you talk about and give them some pause about moving forward with any franchisor that won't stand behind what is said during the sales process. The franchisee should also add questions that are important to them that is not contained in the workbook.

Great tool for every prospective franchisee to have as a guide to what they should be asking.

The workbook was written by Michael Seid of MSA and is included in the CD that comes with Franchising for Dummies but is provided for free through the IFA web page. The link to the book is