Proof 6 of 8

The Paper

Why a buyer cares

Licenses, the franchise agreement and the lease are what make the business legally transferable. Gaps here stop a closing.

How this proof is scored

Each piece of evidence below gets a score. The score for The Paper is the lowest of its four evidence items. A buyer looks for the weak spot, so the weak spot sets the score.

0. Not proven: You believe it, but cannot show it.
1. Partly: Evidence exists but is incomplete, late, or needs you to explain it.
2. Proven: A third party could verify it from documents alone.
3. Proven and tested: Verified and stress-tested: an outsider reviewed it, or it held up when it mattered.

The four pieces of evidence

Each piece starts with the question a buyer will ask. Then it shows what a good answer looks like, and what makes it hold up under pressure.

Evidence 1

Licenses and certifications

A buyer asks this to find out whether the numbers and claims hold up without you in the room.

The buyer's question

Are your IICRC, mold and state contractor credentials current?

What Proven looks like

A third party could verify it from documents alone.

A register of every license and certification with holder and expiry date; all current.

What Proven and tested adds

Verified and stress-tested: an outsider reviewed it, or it held up when it mattered.

A successor qualifier has been identified and holds the credentials.

Evidence 2

Franchise standing

A buyer asks this to find out whether the numbers and claims hold up without you in the room.

The buyer's question

Are you in good standing with the franchisor?

What Proven looks like

A third party could verify it from documents alone.

Franchise agreement, term and renewal dates are known; all fees and reports are current.

What Proven and tested adds

Verified and stress-tested: an outsider reviewed it, or it held up when it mattered.

PDRI has confirmed good standing in writing within the last 12 months.

Evidence 3

Lease and premises

A buyer asks this to find out whether the numbers and claims hold up without you in the room.

The buyer's question

Can your lease be transferred to a buyer?

What Proven looks like

A third party could verify it from documents alone.

The lease has been reviewed for term, assignment and renewal options.

What Proven and tested adds

Verified and stress-tested: an outsider reviewed it, or it held up when it mattered.

The landlord has confirmed the assignment terms in writing.

Evidence 4

Entity, contracts and insurance

A buyer asks this to find out whether the numbers and claims hold up without you in the room.

The buyer's question

Is there anything in your legal file that will surprise me?

What Proven looks like

A third party could verify it from documents alone.

Entity records, ownership, insurance policies, key contracts and vehicle titles are organized; open claims are listed.

What Proven and tested adds

Verified and stress-tested: an outsider reviewed it, or it held up when it mattered.

A transaction attorney has reviewed the file and the issues found are cleared.

Readiness documents

These are the documents that back up this proof. Keep each one current. A document that is a year out of date tells a buyer the business only gets organised when someone asks.

Document	What it is and why	Refresh
License and certification register	Every license and certification, who holds it, when it expires.	Quarterly
Franchise agreement and amendments	Term, renewal, territory, transfer provisions and fees.	Annually
Franchisor good-standing confirmation	Written confirmation that fees, reports and compliance are current.	Annually
Lease and landlord correspondence	Term, options and the assignment clause.	Annually
Entity documents and ownership records	Formation documents, operating agreement, ownership ledger, minutes.	Annually
Insurance policies and claims history	Coverage in force and any open or recent claims.	Annually
Equipment and vehicle list with titles	What is included in a sale, and proof of ownership.	Annually

Score The Paper

Be honest. Score what you could show a buyer this week, not what you plan to fix.

Score this proof in the Scorecard

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