Business Opportunity Due-Diligence Checklist

Verify the seller and the legal offer

Confirm the legal entity, owners, address, registration, history, and people authorized to make the offer. Determine whether federal or state business-opportunity, franchise, securities, licensing, or industry rules may apply. Use qualified counsel for the specific transaction.

Rebuild the economics

List every required payment, financing cost, equipment purchase, inventory commitment, fee, renewal, refund condition, and ongoing operating expense. Test conservative volume and slower collections.

• Match earnings claims to the required disclosure and substantiation.
• Contact references selected through a method you can evaluate.
• Search litigation, regulatory actions, bankruptcies, liens, and complaints.
• Review territory, exclusivity, termination, transfer, and noncompete terms.
• Identify what can be sold or recovered if the opportunity fails.

Slow down pressure

A deadline does not replace missing records. Preserve advertisements, emails, contracts, disclosures, notes, and the version date. Walk away when the seller prevents independent verification or changes material terms verbally.