The Problem

A prospective franchisee requested our assistance in reviewing the disclosure document of a new franchisor.

Our Approach

Applying our knowledge of franchise laws, experience in reviewing disclosure documents, and knowledge of other franchisors in this specific industry, we were able to identify significant risks and variations from industry practice/norms. When we outlined the consequences to the prospective franchisee, he was surprised to hear of the risks and variations from industry norms, having understood the deal quite differently.

The Result

The prospective franchisee decided not to make the very significant investment in this franchise system.