Due Diligence Plan for KMF Franchisee, LLC, Investment
I. Transaction Overview
- Nature of the transaction: acquisition of an ownership interest in an LLC, KMF Franchisee, LLC, which currently has two partners
- Asset to be acquired: 33% of the membership interest in an LLC
- Nature of the business: owns four Rocky Robbins Ice Cream Bar franchises
- Consideration: $225,000 (all cash)
- Personnel: multiple full- and part-time employees; manager of all four stores is in last year of contract.
- Initial deal issues:
- a. Terms of the franchise agreements for the stores
- b. Potential competition from former partner
- c. A $100,000 loan is held by the former business ...