Physical due diligence is a key component of the decision-makingprocess for restaurant and retail owners when purchasing or leasinga desirable location for a new store. From Phase1 Environmental Site Assessments (ESA) to ALTA Surveys orGeotechnicalInvestigations, exactly what due diligence is needed depends onmany factors. A one-size-fits-all approach does not work.

Transaction vs.Development

The due diligence process may not be the same for all franchiseclients or projects. The necessary scope of work is oftentimes dictated by the type of transaction (sale vs. development),size and location of property being evaluated, terms of thepurchase/lease agreement and risk management policy of theclient. For example, a regional restaurant chain who isinterested in leasing 1,000 square feet of in-line retail space mayonly be interested in confirmation that the building materialslocated within the space are not asbestos-containing through anAsbestos Survey. However, a national auto parts provider who is building a new storeat a high-traffic intersection may require a Phase 1 EnvironmentalReport, geotechnical investigation, ALTA survey (with full utility service confirmation)and appraisal.