Planning on taking a Franchise ? Things to Consider …

  • Is the Franchise based in the UK?
  • Is the Franchisor a member of the British Franchise Association (the BFA) or the International Franchise Association?
  • Does the Franchisor hold the intellectual rights?
  • What will be the result (in respect of that licence or any other document, agreement or arrangement) of the insolvency of the licensor or the franchisor?
  • If the Franchisor has provided detailed of the financial projected information- what was this based?
  • Have those figures been calculated with reference to the actual performance of a franchised or company-owned business?
  • If so over what period of time?
  • Was it a business of similar size and location to the proposed business of the franchisee?
  • Do the figures represent trading once the business has achieved maturity or take into account start-up and development time ?
  • What is the percentage of the royalties and service charges that must be paid?
  • Will the Franchisor allow a successor to the business?
  • How accurate have the projections of the franchisor been in the past?
  • How many franchisees have been obliged to put more money into their businesses due to shortfalls between actual and projected performance and in what circumstances?
  • What has been the average additional injection?
  • What experience and expertise does the Franchisor have?