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Advanced Business Operations

Franchise Buying & Due Diligence

Buy a Franchise With Your Eyes Open

12 lessons4 modules10h 5m durationbeginner level

Instructor: StretchLearn Faculty

About this course

This course takes a complete beginner from never having opened a Franchise Disclosure Document to confidently running the full due-diligence process on a franchise opportunity. You will work through the legal framework set by the FTC Franchise Rule, the structure and meaning of all 23 FDD items, the fees and total-investment math in Items 5 through 7, the obligations and territory protections in Items 8 through 12, the litigation, turnover, and financial-statement red flags in Items 3, 4, 20, and 21, the validation calls that test the Item 19 earnings claim, and a complete investment-and-payback model. Every module is built on the real document, named resources, worked numbers, and the specific questions a buyer asks before risking a life's savings.

Curriculum

Module 1: The Franchise Model and the Disclosure Framework3 lessons
Module 2: Reading the Money Items: Fees and Total Investment3 lessons
  • Items 5 and 6: Initial and Ongoing Fees🔒50m
  • Item 7: The Estimated Initial Investment🔒50m
  • Items 8 through 12: Obligations, Financing, and Territory🔒50m
Module 3: Validating Earnings and Reading the Red-Flag Items3 lessons
  • Item 19: The Financial Performance Representation🔒55m
  • Items 3, 4, 20, and 21: Litigation, Turnover, and Financials🔒50m
  • Validation: Calling Franchisees to Test the Claim🔒55m
Module 4: Territory, Modeling, and the Decision3 lessons
  • Territory and Saturation Analysis🔒50m
  • Building the Total Investment and Break-Even Model🔒55m
  • Professional Review and the Go or No-Go Decision🔒50m
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