Insights Whelan Lawyers – Melbourne Commercial, Franchising & Construction Lawyers

Good due diligence does not begin with the disclosure document, even though that is where most prospective franchisees expect to start. The disclosure document is a legal entitlement and the most detailed source the franchisor provides, but you do not receive it until discussions are well advanced. There is public information you can gather well before it arrives, and the picture is only complete once you have spoken to people already in the network.

For most people who buy one, a franchise is among the largest financial commitments they will ever make. It is also a decision usually reached with enthusiasm already formed: by the time a prospective franchisee begins serious evaluation, they have generally decided the opportunity is attractive. Careful evaluation is not there to displace that enthusiasm but to test it, so that the commitment is one you have examined rather than assumed.