Franchisor Due Diligence
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Description

What will we do for you?

Our DDI package comprises the process of ensuring that your system is robust and pass a minimum standard of best practice.

To do this requires an investigation and understanding of legal, financial, commercial, relational, and operational risks associated with your business prior to commencement, during and at the end of ownership.

We will review the following franchise documentation and provide you with a comprehensive commercial commentary on the franchise offer:

  1. Franchise Agreement.
  2. Franchising Code of Conduct.
  3. Franchise Disclosure Statement.
  4. Franchise Agreement.
  5. Agreement for Provision of Commercial Credit.
  6. Supplementary Agreement to Franchise Agreement,
  7. Franchisee’s Acknowledgement.
  8. General Security Agreement.
  9. Summary of General Security Agreement (Mortgage of Personal Property).
  10. Direct Debit Request (re payment of rent under Sub-Lease) Direct Debit Request (re payments due under the Franchise Agreement).
  11. Historical trading results and/or projections of the franchise business being considered.

We can also rate your franchise system for best practice. Our franchise system rating instrument comprises a network of four distinct but related levels that tests 472 performance drivers. These drivers consist of general drivers and benchmark drivers employed in measuring the efficiency of a franchise system. These measurement tasks require minimal data input and are performed electronically. It contains a series of successive steps of gathering, recording, sanitising, arranging, and analysing qualitative and quantitative data in preparation for evaluation. The evaluation process consists of a system of weighting, marking and scoring of 472 performance drivers to arrive at an efficiency rating call the E Factor. The E Factor returns a rating for the franchise system based on the weighted strength of its acculturation, organisation, communication, and incentives systems. In that context, efficiency is defined in terms of how effective the franchise system’s governance structure has been and is likely to be, in achieving the value maximisation goal of both franchisor and franchisee, by minimising the use of resources, time, and effort.

What is your investment?

Between $5,500 and $12,100 with $3,630 upfront depending on how much research we have to do, your contribution and the complexity of the task.

  • 20% when you give us the green light.
  • The balance when the work is completed and delivered.

Questions

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Marketforce Consulting Pty Ltd

ACN 614 946 995

© 2024 All Rights Reserved.

 

What do we strive for?

Keep learning, do our best for those who support us and together we support those who are not as fortunate as us.
This means for every dollar you spend with us we will donate 5% to a charity of your choice.

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