Appendix B: Preliminary Due Diligence Checklist of Franchise-Related Documents

• Pages: 349-359

349

XYZ, INC.

Please provide the documents and lists described below with respect to

each franchise program that currently exists or that may have existed. Cer‑

tain documents may be responsive to more than one request below. In order

to avoid duplication of effort, please cross‑reference previous or subsequent

responses.

[Note to reader: the following list can be further segmented into individual docu-

ment checklists, or can be condensed into broader categories. The former can be

daunting to, and imposing on, the company that is the subject of the due diligence,

but detailed checklists will make easier the task of indexing and reporting the results.

In addition, the due diligence checklist should reect specic aspects of the target

franchise company, its business, and its industry.]

I. FRANCHISE DOCUMENTS AND FILES

A.

Franchise Agreements—List of Agreements Executed with Franchisees

1.

Chronological list (and copies, if not provided in response to

I.B.2.a. below) of all executed franchise agreements (including

standard franchise and nontraditional franchise agreements),

identifying the outlet and whether:

a. in operation (with original owners);

b. executed, but not yet in operation;

c. transferred but still in operation with date of transfer;

d. terminated; or

e. reacquired.

Appendix B

Preliminary Due Diligence Checklist of

Franchise-Related Documents

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