smallbusiness.co.uk: Helping your business think big

Cancel Christmas?

Some of you are probably wondering whether you should cancel...
Have your say »

RSS

Q: I am looking seriously at buying a franchise. I have received a copy of the franchise agreement and it seems to lean very much towards protecting the franchisor’s interests. Is this typical? Am I right to be concerned or am I being too cautious?

Apr 30 2007

Email a friend

Answered by: Julie Waites Ask a question

Most good franchise agreements are drafted in favour of the franchisor so that the franchisor has the ability to protect the business brand and system from abuse by an errant franchisee. If you become a franchisee you will not have any legal relationship with any of the other franchisees in the business and will need to rely on the strength of the agreement to ensure that the franchisor can protect you and itself.

However it is important that you take legal advice before entering into a franchise agreement and paying over any money, preferably from a solicitor who is experienced in franchising. You can access a list of BFA affiliated solicitors from the British Franchise Association’s website www.british-franchise.org.uk

Comments [1]

Comment by Keith Green

Thursday 3rd May 2007

Before spending lots of money with a solicitor I would speak to a few existing franchisees. Are they happy with their business? How many franchisees does the company have and what is their success/failure rate? Also check out the franchisor's directors and their business background. What other business interests do they have? Will they support you properly or are their attentions diverted by other business interests elsewhere?

Finally, have you considered buying either an existing, already running franchise (they come up quite often) or looking at a non-franchised business for sale in the same business sector. Try www.businessesforsale.com as a good starting point.

Report this comment

Prize Draw

Free prize draw!

Smallbusiness.co.uk has teamed up with Avery® Quick&Clean™ Business Cards to offer five lucky readers the chance to win a copy of BBC Dragons' Den James Caan's new book The Real Deal and a pack of Avery® premium heavyweight business cards. To enter the prize draw, simply answer our question here

Polls

Q & A

Starts ups expert

Ashley de Safrin, Business Link in London Ask a question

Business technology issues

Chris Lindsay, BT Ask a question

Sales and Marketing tips

Jackie Jarvis, MarketingCo.biz Ask a question

News

smallbusiness.co.uk: Helping your business think big

UK needs to help start-ups

The country needs to work collectively to help people with good ideas to start up their own business.

Government launches £25 million business fund

The government has launched a £25 million fund to aid women in business, aimed at high-growth companies.

£1m for Scottish start-ups

A £1 million fund has been launched for Scottish entrepreneurs to help them set up firms with a social or environmental purpose.

Going green 'can save money'

Businesses can save money by employing greener methods, but it requires some investment upfront which may put firms off.

Pre-budget tax cut calls

Tax cuts announced in the pre-budget report on Monday will be targeted to benefit SMEs, says accountancy firm Deloitte.

Bosses should help fight staff obesity

Employers should help staff battle obesity with healthy eating options, as it will lead to a more productive workforce.

Small firms 'must be in pre-Budget report'

The pre-Budget report must give companies 'innovative and short-term' solutions for finance such as a £1 billion small business survival fund, an organisation has warned.

Government to loan money direct to businesses

The government will give loans to businesses via regional development agencies (RDAs), as banks are still not lending to companies, a report in the Times says.

Bosses 'need to tackle stress'

Company bosses need to identify stress in staff early and ensure they are tackling it before it becomes a more serious problem, an expert advises.

Social networking marketing 'is a risk'

Using direct marketing through social networking sites is a risk as it cannot be controlled in the same way as other forms of marketing, according to an expert.

Work bullying 'could get worse'

Nine in ten people think they are a victim of workplace bullying, with one organisation warning this could get worse in the credit crunch.

Guides & Tips

Redundancy is not the only option

Many SMEs will have to control staffing costs over the coming months. Smallbusiness.co.uk has teamed up with Simon Kite, a partner at chartered accountants Saffery Champness, to offer some tips on how to cut costs and avoid the redundancy route

What benefits do staff want?

 Oval Financial Services’ Debby Hannaford explores how focus groups and surveys can be used to gain constructive and positive feedback about employee benefits packages

Automated hacking

What do the Sony Playstation game ‘SingStar Pop’ and the Association of Tennis Professionals (ATP) have in common?

Store

FT Guide to Personal Tax

Formerly the Lloyds TSB Tax Guide, the FT Guide to Personal Tax is now published by Pearson Education. Written by Sara Williams, CEO of Vitesse Media Plc and Jonquil Lowe, this unique guide gives step-by-step advice to completing your tax return as well as 100 tax-saving tips.

FT Guide to Business Start Up

Formerly the Lloyds TSB Small Business Guide, the FT Guide to Business Start Up is now published by Pearson Education. Written by Sara Williams, CEO of Vitesse Media Plc, this unique guide has sold over two million copies. It offers practical advice about starting and running your own business.

Growth Company Investor

Growth Company Investor is widely recognised as the leading magazine for investors interested in AIM and smallcap companies. Published 10 times per year, and brought to you by an award-winning analyst team, it offers subscribers unrivalled insight into high-potential smaller companies. Subscribe today with a 50% discount in your first year.