01530 513300

10 questions to ask before you sign a Franchise Agreement

10 questions to ask before you sign a Franchise Agreement

Categorised in: Ask Nigel    Posted: June 1, 2016

Taking on a franchise is a big decision – right there with marriage and moving house – so it requires careful and due examination.

So rule number one – don’t rush and don’t let the Franchisor rush you.

Second rule, when you think you have found the right business, the right opportunity – stand back and ask yourself these ten questions.

  • Do they have a solid trading history?
  • Are they financially sound?
  • Do they have a history of success?
  • Is there a genuine Head Office support structure?
  • What do they actually provide by way of support?
  • If the franchisor supplies product, what are the T’s and C’s?
  • What is their position in the market?
  • Are projected cash flows realistic? Can they prove so?
  • Does the company have a finance facility with the banks?
  • How tough is their interview process?

Rule number three – take the franchise agreement to a bfa accredited lawyer and get feedback on its contents and meaning.

Rule number four relies on you locating that that most elusive of mammals  – a half decent accountant – to work with them to create a business plan.

Finally, make your decision!

In summary four rules you should obey before you sign on the ……….. line.

Don’t rush, ask questions (of yourself), take professional advice, make a decision.

About the author Nigel Toplis

Nigel Toplis is the Managing Director of The Bardon Group. Nigel sees his key role as providing the vision and direction for each of the businesses, developing new income streams - across the board, recruiting customer focused and passionate Franchise Owners and providing business and management support to my Franchise Owners.

Follow Nigel on LinkedIn for regular updates

Share with others