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

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

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.


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