Really most business people aren't very good at business, the failure statistics don't lie.

In a contracting business, success or failure is generally defined by the particular skillset and communication of the individual rather than external factors so I don't know that the franchise model will be a major advantage here.  

Lack of capitalization is the primary factor in failure for nearly all small businesses.

If a loan is not worked out through the process, what happens in the 11th month or the 13th month, if failure is the writing on the wall then it seems that dispositions of the remaining assets will go back into the most profitable venue, selling the asset or foreclosure as customary.In the 11th month a list will probably be made, in the 13th month it looks like they are back to business as usual.

One significant failure and it will cost you a lot more in damages and in doing it over.Also, depending on the jurisdiction and the extent of the work being done, you may need to pull a permit before you can begin the work and it will need to be properly inspected to pass code.

@Bryan Wilhelm there are a wide variety of ways to define failure in this case.I'll enumerate what comes to mind:Contract too short, can't find a buyer in timePrice to seller too high, no interestPrice to buyer too high, can't produce a buyer at a price so that you make moneyFailure to disclose the nature of the transaction, deal dissolves at closing tableFailure to calculate the cost of a double closing, no profit (or perhaps, a loss)Failure to structure the deal so that double closing is not necessary

-"One of the most common causes of failure is the habit of quitting when one is overtaken by temporary defeat."

Failure is not an event.

If as a syndicator you do not know how to evaluate an asset class conservatively you are putting your partners capital or passive investors money at extreme risk.The chance of failure is high when an asset is not properly evaluated and the sponsor has very little experience or track record.This is probably why you are getting push back to not do this deal.No legal advice given.   

It is unthinkable to me that I would ever walk away from a failure without consequences.