This is a simple process that anyone can do prior to showing an Australian franchise opportunity to their accountant and solicitor, saving you hundreds if not thousands of dollars in consulting fees.

Step 1 - Product Differentiation

Quite simply, the product or service must be sufficiently different from what else is easily obtainable in the market. These days "high quality" is nothing like enough to be successful - the market is awash with "highest quality". If you don't have a point of difference that is sufficiently exciting, forget it.

Step 2 - Size and Behaviour of Market

How big is the market for your product or service? Is it growing or in decline? Has this market absolutely proven its desire for your product or service?

Step 3 - Price Competitiveness

Even if you have a massive point of difference, if your product or service isn't price competitive with existing brands, people generally will not change what they're already doing. If people can walk into a store where they already shop and buy a competing product for the same price, forget it.

Step 4 - Company History & Credentials of Founders and Senior Executives

How long has the company been going? Have any of the founders or senior executive got themselves a criminal record? What are the qualifications of these key personnel?

Step 5 - Clinical Research

Many companies make claims about their products or services which in fact have no valid 3rd-party evidence. If all they can show you is their own research, or research that only vaguely relates (eg, if it grows plants in space it'll work for human health on planet Earth) or a bunch of testimonials, run away as fast as you possibly can!

Step 6 - Proof of Earnings

You must be able to view audited, published average earnings of those who've gone before you.

Results of Due Diligence

If you do these steps properly you will have a business whose products or services are in high, increasing demand, at the price being charged, and which is unlikely to be challenged by any competitor.

You will have selected a business which is likely to maintain respect in its industry and continue to perform well.

You have selected a business which is likely to support you solidly as you establish and grow.

This business may still not be for you, but you will have maximised your chances of picking the best possible choice, and minimised chances of loss or regret.