 This section details what company is the franchisor and their history  Look for a company that has been in business for at least a year  Is the company.

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Presentation transcript:

 This section details what company is the franchisor and their history  Look for a company that has been in business for at least a year  Is the company a one-person operation or large corporation

 The litigation section lists cases pending against the franchisor.  Watch for numerous suits from franchisees

 These sections detail initial franchise fee, payments, ongoing fees, and total initial investment  Watch for hidden fees in the agreement  Make sure you’re aware of payment due dates

 This section details what assistance is available for financing the franchise.  Some franchisors will help finance the contract

 This section details what you will receive as a franchise. This could include:  Site selection  Management assistance  Training  Software/database access  Merchandising ideas

 This section details whether or not your franchise would get an exclusive territory for operations  Make sure you get exclusive territory to operate

 This section details the length of the contract and how it can be renewed or terminated  Watch for long periods (50 years for Putt-Putt)  Make sure you have an ability to get out of the contract if needed

 This section details averages for sales, profits, or earnings  Illegal to promise earnings, so no actual figures should be provided  Find what percentage of franchisees have had the sales, profits, or income claimed by franchisor

 Make sure you read the circular as well as having a lawyer read it over

 Self analysis  Choose product/service  Seek likely franchises  Investigate  Other franchisees  Third parties  Franchisor  Have lawyer review  Sign agreement