MatchRight Next Steps Program • Consulting & Advisory Services
12-Point Franchisor Assessment Framework
Comprehensive Due Diligence & Multi-Vector Audit Model for Prospective Franchise Buyers
Core Evaluation Vectors
01 Cumulative Franchisee Attrition Rate
Audits multi-year unit churn, FDD Item 20 closures, terminations, non-renewals, and transfer ratios relative to gross unit openings.
02 Financial Stability & Solvency
Reviews franchisor audited financial statements, balance sheet reserves, working capital cash flows, corporate debt, and operating margins.
03 Culture & Alignment
Evaluates corporate-franchisee communication transparency, shared vision, Advisory Council (FAC) effectiveness, and system satisfaction.
04 Royalty vs. Overhead Ratio
Compares ongoing fixed/variable royalty & ad fund fees against store-level monthly operating overhead to safeguard franchisee profit retention.
05 Litigation & Friction History
Analyzes FDD Item 3 disclosures for recurring disputes, systemic franchisee lawsuits, arbitration claims, or breach of contract actions.
06 Unit Financial Performance
Evaluates FDD Item 19 earnings disclosures, Average Unit Volume (AUV), gross profit margins, quartile variance, and breakeven horizons.
07 Systemic Expansion vs. Churn
Verifies whether net system growth reflects true organic brand expansion or is masking underlying unit closures with aggressive sales.
08 Operational Complexity
Assesses required staffing models, key manager delegation systems, supply chain logistics, and candidate skill-set compatibility.
09 Marketing & Lead Generation
Audits central marketing support, ad fund capital deployment, local customer acquisition infrastructure, and digital brand presence.
10 Total Capitalization Runway
Examines FDD Item 7 startup costs, hidden vendor software/tech fees, required working capital buffers, and post-opening cash needs.
11 Onboarding & Field Support
Reviews initial headquarters training, ongoing field operational coaching, site selection/buildout guidance, and vendor access.
12 Territory Protections & Scope
Audits exclusive territory radius guarantees, demographic density thresholds, market saturation, and peer/corporate cannibalization risks.