Buy a franchise
Tips on franchise agreements
The franchise agreement is crucial. Don't sign any agreement, or pay any fees or deposit, until you have taken legal advice from an experienced franchise solicitor accredited by the British Franchise Association. Get a specimen contract for them to review.
Areas covered by a typical agreement
- Term -how long does the franchise last? Will you have the option to renew it, and on what terms?
- Territory - what area does your franchise cover? Do you have exclusive rights to sell within it?
- Fees - what initial fee will you pay? Whatpercentage of sales revenuewill you pay? Will you pay a regular management fee - and if so, what does it cover? Will you have to pay other costs? How are the costs worked out?
- Support -how much help will you get starting the business? What continuing support will you get?
- Restrictions -what restrictions are there on what you're allowed to do and how you must run the business?
- Exit -what happens if you can't continue in the business for some reason - perhaps due to ill health? What happens if you want to sell your franchise?
Subjects covered in this guide
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