Attentive presale due diligence is highly unreliable.

You maybe looking for one risk, be 100% accurate in quantifying it, sign but get totally blindsided by a hidden risk.

Our brains evolved to look for certain types of risks. They suck with highly abstract risks.

The breadth and depth of these dangrs is what I;m trying to suggest in my Risks section of WikiFranchise.org.

This video shows how easily attention to one thing blinds you to another.

Advertisements

One Response to Attentive presale due diligence is highly unreliable.

  1. Carol Cross says:

    So True! The presale process in franchising is designed to divert the atttention of the new buyer from essential risks as could be revealed by mandated disclosure by the franchisor of UNIT performance statistics of the system they ars joining.

    Franchisors are permitted by existing law to put lipstick on pigs!

    The franchisors are not required to provide a prospectus to new buyers and are permitted to pass off their obligation to disclose material risk to new buyers to the former and current franchisees who have no legal duty to honestly disclose to new buyers and who don’t personally profit from the sale.

    This is “monkey business” that subsidizes franchising and destroys
    so many new franchisees who wouldn’t have bought the franchise if they had any idea of the risk involved.

    Like

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: