Before Buying A Franchise Get Some Advice

1
Seeking The Right Legal Advice For Franchising
2
The Right Legal Advice

• Franchising is a distribution model and it is
  important to note that this model requires a
  unique system created for the particular business
  to be franchised, and is distinguishable from a
  form of marketing

3
Is The Business Franchiseable?

• The first stage of preparation is to assess
  whether the existing business is able to be
  franchised. This is largely determined by
  evaluating the market in which the business
  operates and assessing the ability to establish
  successful clone operations in other locations

4
Developing The Franchise

• Once the above steps have been completed, the
  franchisor should then work on the operational
  model of the system. This process involves the
  creation of workflow and the separation of duties
  between the franchisor and franchisees

5
Financial Modelling

• If the business is one which has the potential of
  being franchised, it is essential to create a
  financial model, having regard to both parties
  which will make up the whole of the business the
  franchisor and the franchisee

6
Operations Manual

• The Operations Manual is a crucial part of the
  offering to franchisees rights. It is the
  operational bible of the business and must be so
  comprehensive that it should cover all aspects of
  running the franchisees business.

7
Territory/Site

• Depending on whether the franchise is in respect
  of a mobile or retail business. the franchisor
  must determine whether the franchise is being
  granted for a territory or a specific site

8
Supply Arrangements

• It is tempting for a franchisor to create
  additional income streams from the franchisee
  group of businesses. 

9
Franchise Agreement

• the lawyers role to correctly record commercial
  terms and the parties obligations in the
  franchise agreement which is ultimately the
  single most important document and the result of
  the initial setup project.