The Franchise Centre

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Due Diligence Research

Due diligence for those looking to enter the franchise sector is never far from the spotlight yet the initial findings of a new research report – ‘The effectiveness of undertaking due diligence prior to starting up or purchasing a small business or franchise' – indicate there is still plenty of room for improvement in this area.

Phase 1 of the research

Comprising of interviews with 60 current and former independent small business owners and franchisees across Australia, Phase 1 points to a need for greater education and support during the decision-making process prior to starting or purchasing a small business.

Many participants were unfamiliar with the term ‘due diligence’ or with how to conduct effective due diligence, and there were significant differences in both the type and amount of due diligence undertaken by independent small business owners and franchisees.

Phase 2 of the research

This phase involved an online survey of a large national sample of independent small business owners and franchisees. Less than one-fifth of franchisees and independent small business owners believed they had a clear understanding of due diligence before they purchased or established their business.

Get free access now to Phase 1 and Phase 2 of the report direct to your inbox immediately by completing the form on the right.


The new research project has been conducted by Griffith University’s Asia-Pacific Centre for Franchising Excellence, in conjunction with researchers from the University of New South Wales and supported by CPA Australia.