The information you submit via our enquiry form is shared only with the franchise business(es) that you have selected.

The franchise business will contact you by means of email and/ or telephone only to the email address and phone number you have provided.

By submitting the enquiry form you are consenting to send your personal information to the selected franchise business.

You also agree to receive further newsletter email marketing from What Franchise.

Close

How To Read A Franchise Agreement

How To Read A Franchise Agreement

Andrew Hayward, director at Owen White Solicitors, gives you the inside track on what to look for in a franchise agreement

You’ve sifted through several franchise opportunities, decided which you prefer and you’re waiting for the franchise agreement. But what sort of document should you expect? What should you be looking for in it?

Franchise agreements vary in content and quality. If the franchisor is a member of the British Franchise Association, you will have the comfort of knowing the franchise agreement has been vetted as part of the membership accreditation process. This means it should comply with the bfa’s code of ethics for franchising, which sets out standards of business conduct for franchisor members and specific requirements for the franchise agreement itself.

For example, if the franchisor is a bfa member, the agreement should contain a right to renew on the expiry of the initial term. It should also provide you with an opportunity to realise a reasonable value for the business. Both of these rights will have certain conditions attached, which should appear in the agreement.

Broadly speaking, you should be looking for answers to the following questions in the agreement:

* What is it going to cost me and what do I get for that?

* What have I got to do and what can’t I do?

* How long does the agreement last and what happens when it ends? What is it going to cost and what do you get?

There is usually an initial fee; the agreement should list what you are paying for, which should include the licence fee and training.

There is ordinarily an ongoing fee, often called the management service fee that’s payable weekly, monthly or sometimes quarterly. Typically, it is calculated as a percentage of your revenues, sometimes it is fixed or a minimum fixed amount is payable.

The agreement should record what support you will get from the franchisor in the establishment of your new business. This may include advice and assistance on the location, fitting out and design and putting together a business launch marketing programme.

The agreement should set out what ongoing support you will receive. This may include continued regular training, annual or more frequent conferences or seminars, technical support and the procurement of supplies or guidance as to where they can be obtained.

There will usually be rules about where you can source supplies. Some agreements require that they be obtained from the franchisor, unless otherwise stated. It is worth finding out if the franchisor marks-up such supplies and whether they could be obtained elsewhere at a better price before you sign the agreement.

Exciting Franchise Opportunities

The Urban Chocolatier logo

Start your own The Urban Chocolatier franchise

Profit Chart
Funding Support Available ? Help is available. Check out our franchising funds guide.

Yes

Find Out More
Expected Revenue After 2 Years

£872,000

Request Free Information
Find Out More
The Urban Chocolatier logo

Request Free Information

Send a free enquiry to The Urban Chocolatier for further information!

By sharing your email, you're agreeing to our privacy policy, cookie policy and terms & conditions.
Key Sounds Music logo

Start your own Key Sounds Music franchise

Profit Chart
Funding Support Available ? Help is available. Check out our franchising funds guide.

Yes

Find Out More
Expected Revenue After 2 Years

N/A

Request Free Information
Find Out More
Key Sounds Music logo

Request Free Information

Send a free enquiry to Key Sounds Music for further information!

By sharing your email, you're agreeing to our privacy policy, cookie policy and terms & conditions.
Jackson Fire & Security logo

Start your own Jackson Fire & Security franchise

Profit Chart
Funding Support Available ? Help is available. Check out our franchising funds guide.

Yes

Find Out More
Expected Revenue After 2 Years

£300,000

Request Free Information
Find Out More
Jackson Fire & Security logo

Request Free Information

Send a free enquiry to Jackson Fire & Security for further information!

By sharing your email, you're agreeing to our privacy policy, cookie policy and terms & conditions.
ActionCOACH UK logo

Start your own ActionCOACH UK franchise

Profit Chart
Funding Support Available ? Help is available. Check out our franchising funds guide.

Yes

Find Out More
Expected Revenue After 2 Years

This would be discussed at interview...

Request Free Information
Find Out More
ActionCOACH UK logo

Request Free Information

Send a free enquiry to ActionCOACH UK for further information!

By sharing your email, you're agreeing to our privacy policy, cookie policy and terms & conditions.
CyberGlobal logo

Start your own CyberGlobal franchise

Profit Chart
Funding Support Available ? Help is available. Check out our franchising funds guide.

Yes

Find Out More
Expected Revenue After 2 Years

£500,000

Request Free Information
Find Out More
CyberGlobal logo

Request Free Information

Send a free enquiry to CyberGlobal for further information!

By sharing your email, you're agreeing to our privacy policy, cookie policy and terms & conditions.
View all opportunities