Professor Lorelle Frazer. Image: griffith.edu.au

Due diligence has been brought into the limelight for the more than 1,600 potential franchisees who've joined the Pre-Entry Franchise Educaion Program, which launched 12 months ago.

The program was developed by Griffith University's Asia-Pacific Centre for Franchising Excellence and funded by the Australian Competition and Consumer Commission (ACCC).

Centre director Professor Lorelle Frazer said the program was developed following Centre research which revealed franchisees often had unrealistic expectations and were ill-informed prior to entering franchising, which was a major cause of franchise conflict.

"The program is offered online and free to maximise accessibility. It provides five modules of easy-to-understand information to help prospective franchisees conduct due diligence and better understand their rights and obligations," Professor Frazer said.

Queensland's Mark Easterbrook, who is just finalising the paperwork for becoming a franchisee, said he found the program extremely useful.

"The pre-entry program was very informative.  It helped me understand what is involved in becoming a franchisee and pointed me in the right direction to get answers and to ask the right questions," he said.

"My greatest insight from the program was the level of detail you need to get into in every aspect of the business, from legal advice, through to a business plan and estimating cash flow, to the franchisee's obligations.

"I think the program should be mandatory for any 'new' franchisee without business experience."

For more information on or to complete the Pre-Entry Franchise Education Program visit: www.franchise.edu.au/pre-entry-franchise-education