A "feasibility study" is essentially the study of market factors and business issues that can or may influence your business or franchise opportunity in the future.
A potential franchisor expanding their business must conduct a feasibility study in order to:
(a) assess current and emerging competitors,
(b) analyze current business conditions,
(c) the acknowledgement of legal or licensure prerequisites for conducting business,
(d) an analysis of current consumer demands,
(e) and any other crucial developments in the franchise industry that may help or hinder the success of an individuals franchise opportunity.
The purpose of the feasibility study is to uncover any hidden material not yet discovered by the potential franchisor, and enables a franchisor to critically assess the future success of their business expansion.