Step Nine - See A Specialist Lawyer

It is important to understand the nature of the franchise agreement, as this is the document on which your relationship with the franchisor is founded. Most franchise agreements are lengthy documents (40-60 pages), and are couched in legal language. However, this should not deter you from reading through it paragraph by paragraph and making notes of questions that arise (don’t try doing this all in one go, and definitely don’t try doing it in bed unless you are an insomniac!).

You must then get a lawyer to check over the franchise agreement. Issues may include: exclusivity; territory; term of the agreement and options on expiry; and performance criteria. If you don’t understand what you are getting into – what your obligations are and what the franchisor’s obligations are – then you could be in for some nasty surprises further down the track.

Use a lawyer with franchise experience - again, he or she will know what to look for and will be quicker. Lawyers inexperienced in franchising often waste their time - and your money - querying quite standard conditions. The Directory  on this website includes a list of franchise-experienced lawyers.

Do not sign anything until you have been through this process.

Essential reading
Why use a lawyer?
What’s in the franchise agreement?