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Franchise Checklist
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Scores 4.82 with 89 votes
Business
34 tasks
By
Campbell Rodriguez
Table of Contents
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Talk to the Franchisor
Know the company's financial condition and history.
Check how long it has been franchising.
Check details of pilot operation results.
Ask for current number of franchisees.
Ask for permission to talk to random franchisees.
Check main source of company earnings.
Check demand for the product or service.
Check value and appeal of product or service.
Check long-term viability of product/service.
Ask for type and level of head office support.
Ask for full details of the training provided.
Check whether training is an extra cost.
Check total cost of taking up the franchise.
Determine realistic working capital needed.
Check permission for bank references and other referees.
Check territorial practices and exclusivity terms.
Know types and amounts of advertising.
Know if there is a need to buy products from the franchisor.
Check target obligations.
Know realistic profit and loss figures.
Check management service fees or royalty payments.
Ask for operating restrictions.
Check launch assistance.
Ask for sample contract.
Franchise Agreement
Your rights to sell/transfer ownership of franchise.
Obligations to the franchisor.
Rights to renew or extend contract beyond original term.
Terms and conditions for terminating contract.
Description of training and support offered.
Price, commissions, rental fees involved.
Boundaries of the territory awarded to you.
Description of your heir's rights in the event of your death.
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Good
Excellent
Excellent.
Scores 4.82 with 89 votes
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