If you’ve been exploring the waters in the world of franchising, you’ve come across the term “due diligence.” This marks the final phases of committing to purchase a franchise. 

Investing in a franchise is no small commitment. Depending on the longevity and brand recognition, the initial franchise fee could be anywhere from $10,000-$50,000 for a single unit. Add that to the initial start-up cost and your financial investment could be upwards of several hundred thousand dollars.

Every now and then I have a prospective franchisor that wants to consider licensing as an alternative to the formal franchising process. I understand their motives. At first glance, licensing looks like a faster, lower cost and less extensive process. 

Meeting with a lawyer is an investment. If you choose a high caliber franchise lawyer, it can be a substantial investment. This is necessary to ensure the success of your franchise selection, as well as protect you against common franchisee pitfalls.