Identify what is actually for sale
See this course’s project requirements
A fictional purchase due-diligence file with disclosure questions, normalized earnings, owner labor, recurring fees, financing stress and a proceed/revise/stop decision.
Keep your working files in your own notebook or software. Save a private description, checklist, and work link in My Proof.
What to include
- An acquisition-scope and price-component exception file.
- A claim-definition, sample and selection-audit worksheet.
- A reported-to-normalized-to-owner-adjusted profit bridge.
- A recurring-fee and contract-control reconciliation.
- An operating-to-cash coverage bridge and downside financing stress.
- A conditional acquisition due-diligence brief with decision gates.
Review and revise
Use these criteria to check your work and choose what to improve.
- Scope: price/rights gaps are explicit.
- Claims: sample/owner labor/normalization are checked.
- Finance: fees and debt/reserve/downside bridges reconcile.
- Decision: supported conditions and qualified review remain visible.
Want more background?
The idea in everyday life
Original fictional practice. All money is USD. No account, payment, personal record or outside participation is required. Fictional Atlas Desk franchise proposal: price 60,000 buys listed physical assets 20,000, inventory 5,000 and 25,000 goodwill; initial franchise fee 10,000 is additional. Local lease/brand rights/customer data transfers need separate approval not assumed. Earned annual sales 200,000, reported expenses 140,000 including variable 80,000, recurring fixed 56,000 and documented one-off repair 4,000. Seller’s claimed profit 60,000 excludes unpaid owner 2,000 hours/year; practice replacement labor 15/hour. Prospective contract royalty 6% gross sales plus adfund 2%, neither included in seller expenses. Annual debt repayment 15,000 and maintenance capital reserve 3,000. Downside 20% less sales, variable cost 40% of sales, fixed 56,000 and owner labor 30,000 unchanged. Comparable earnings sample ten open outlets: k USD -12,0,5,8,15,18,20,22,28,50; two closed outlets omitted, and their results unknown.
Buying assets does not automatically transfer every permission or contract.
Identify what is actually for sale — complete worked case
Buying assets does not automatically transfer every permission or contract.
Fictional Atlas Desk franchise proposal: price 60,000 buys listed physical assets 20,000, inventory 5,000 and 25,000 goodwill; initial franchise fee 10,000 is additional. Local lease/brand rights/customer data transfers need separate approval not assumed. Earned annual sales 200,000, reported expenses 140,000 including variable 80,000, recurring fixed 56,000 and documented one-off repair 4,000. Seller’s claimed profit 60,000 excludes unpaid owner 2,000 hours/year; practice replacement labor 15/hour. Prospective contract royalty 6% gross sales plus adfund 2%, neither included in seller expenses. Annual debt repayment 15,000 and maintenance capital reserve 3,000. Downside 20% less sales, variable cost 40% of sales, fixed 56,000 and owner labor 30,000 unchanged. Comparable earnings sample ten open outlets: k USD -12,0,5,8,15,18,20,22,28,50; two closed outlets omitted, and their results unknown.
Earnings reconciliation
Paste at A1.
| AItem | BAmount | CStatus |
|---|---|---|
| Revenue | 200000 | Seller record |
| Variable | 80000 | 40% case share |
| Recurring fixed | 56000 | Before unpaid owner |
| One-off repair | 4000 | Documented addback case |
| Owner labor | 30000 | 2,000 h×15 |
| Royalty/adfund | 16000 | New 8% gross |
| Debt/reserve | 18000 | Cash stress |
Copy as plain text
1. 1.1 Identify
List price components and sum their values independently.
You should see: 50,000 listed against 60,000 price.
2. 1.2 Identify
Flag unexplained 10,000 gap and separate additional franchise fee.
You should see: Known price+fee 70,000 before other costs.
3. 1.3 Identify
Create acquired asset versus transfer-permission matrix.
You should see: Lease/data/brand approval remain unverified.
4. 1.4 Identify
Add new required training 5,000; update known outlay 75,000 and preserve questions.
You should see: No automatic ownership/authorization claim.
What to finish
An acquisition-scope and price-component exception file.
Watch for this
Assuming brand/lease/learner data or all liabilities transfer just because a price is quoted.
How can I tell I understand it?
Verify that your completed acquisition-scope and price-component exception file meets the three lesson-specific checks and retains the supporting original records.
Quick knowledge check
Answer all 3 questions. Get at least 2 right and the lesson completes automatically.
You’ll get an explanation for each answer. Signed in? Your results save to your account.
Pass the check. We’ll save the progress.
Answer all 3 questions above and get at least 2 right. You can review the explanations and try again.
Go to the knowledge checkTools, templates, and lesson sources
Tools and templates
Tools open in a new tab so you can keep your place here.
Sources and further reading
Explore the references behind this lesson.
Source & access notes · checked 2026-10-01
Read actual redirected acquisition section on differing rights/control, full landscape and due diligence. Course uses current FTC terminology FDD rather than older source UFOC terminology.
Access: Public primary page body opened and relevant sections read through the web reader on 2026-10-01; no account required for reading.
Reuse: Original Life Starter cases, datasets and questions; no source exercise or worked dataset reproduced. Links support further reading.
Source & access notes · checked 2026-10-01
Read costs, continuing royalties, controls, disclosures and earnings evaluation. Original proposed acquisition is entirely fictional.
Access: Public primary page body opened and relevant sections read through the web reader on 2026-10-01; no account required for reading.
Reuse: Original Life Starter cases, datasets and questions; no source exercise or worked dataset reproduced. Links support further reading.
Report a problem with this lesson
Tell us what went wrong. Please leave out personal information and private project contents.