Checklist of cautions before taking on a Franchise

Some of the cautions for the franchisees are:

  1. Make sure you obtain legal advice.

  2. Make sure you talk with your accountant before proceeding.

  3. Explain to the franchisor your expectations so everything is clear before you go ahead.

  4. Have all statements verified.

  5. Keep everything in writing. Ask for any representations outside of the agreement to be put down in writing so that you can have this on record.

  6. Other franchisees. Always talk to other franchisees and see what they feel and think about the franchise.

  7. Make your own checks – find out the reputation of the franchisor and how successful they have been over the years.

  8. Look at agreements – make sure all agreements are fully examined and passed through your legal representatives before signing.

  9. Disclaimers – check any disclaimers that are in the documentation because you want to know what the franchisor would accept no responsibility for.

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