Danny Bone understands due diligence. He spent months investigating franchise options, before focusing specifically on Elevation Burger. Elevation Burger uses the slogan “Ingredients Matter”, emphasizing its “organically raised, grass-fed, free-range cows and fresh-cut fries cooked in heart-healthy olive oil.”

The company had been in business three years when it started franchising in 2008. Danny’s brother Dennis brought franchising experience to the company from his days of managing their parents’ Dunkin’Donuts franchise. Danny and Dennis began their franchise agreement with Elevation Burger in the spring of 2008, intending to open their Austin Texas, location by the end of that year.

What Danny hadn’t counted on was the recession. Financing suddenly tightened, and forecasts for restaurant sales were especially negative. Nevertheless, Danny and Dennis remained confident and were convinced that they understood how to run a cost-efficient operation. The brothers were committed to opening three Elevation Burger restaurants in the Austin area.
Question 1: Should the Bone brothers have anticipated an economic downturn as part of their due diligence investigation?
Question 2: What steps would you take to attract customers to your franchised restaurant when they are trying to save money?
Question 3: What can the Elevation Burger franchisor do to help franchisees during a recession?