2.  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

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

4.  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

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

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

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

8.  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

9.  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

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

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