A great brand is not the same as a great fit—and discovery calls are not due diligence
McGroarty argues that a franchise can tick every box on paper and still be the wrong business for a particular person.
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Early steps—a polished discovery call and well-produced sales materials—are designed to make a buyer enthusiastic about the brand, not test whether it suits them.
- Due diligence means digging into the buyer's own situation as well as the franchisor's.
- The post recommends assessing whether the role requires daily hands-on work or can be manager-led, and whether that fits the buyer's skills and lifestyle; adding up build-out, equipment, inventory, insurance, payroll, marketing, training travel and working capital, not just the franchise fee; researching local competition, labour availability, property costs and the real customer base; talking to a wide range of existing owners, not just favourites; stress-testing a slow or delayed opening; reviewing the FDD, Item 19 earnings claims, territory terms and franchise agreement with legal, tax and financial advisers; and understanding the agreement's commitments over its life, including royalties, fees, renewals, transfer rules and exit terms.
The owner-interview questions show the approach in miniature. Rather than asking whether owners like the brand, McGroarty suggests asking what things really cost, what a normal week looks like, what post-launch support was actually like, what surprised them, whether they would do it again and what they would dig into sooner.