Introduction This
website has been provided by EXB, specialist franchise
consultants, to give guidance to potential franchisees before they
sign up to a franchise agreement. Franchising can be an
excellent way to run your own business with the systems and support
of a franchisor. However, you should be clear on your legal
obligations to the franchisor and be as certain as you can that the
business and franchise are right for you.
Advice on the Franchise Agreement
Before you sign any franchise agreement, we
strongly recommend that you get advice from a franchise specialist
such as EXB. We can prepare a detailed written report on the franchise
agreement that you are being asked to sign. The report is very comprehensive and detailed, and will
point out the risks on the agreement, explain the meaning of each
clause, and highlight any unusual or particularly
unfavourable parts of the agreement. Any report will be tailored to your circumstances and
take into account whether you will be entering the franchise
as a sole trader, partnership or limited company. Since franchise agreements are usually non-negotiable, the report
is usually all the advice on the agreement that you will need. However, you are recommended to raise with
the franchisor any issues, from the report or otherwise, that concern you and if the
franchisor is willing to negotiate, you may wish to ask for further advice from your
franchise consultant or lawyer in relation to the negotiation or any related redrafting of the agreement or any side-letters.
Other investigation
The report from EXB or other franchise specialist is one part of your
assessment process before you take the decision to proceed with becoming a franchisee. Please see the
Assessment and Investigation sections of this website for some guidance on other investigations that you should be doing. |