Franchise Advice
“A franchise solicitor will translate the jargon, flag the obligations, and tell you what’s standard… and what’s not”
It’s not about negotiation – it’s about understanding A common misconception is that there is no point in getting legal advice because “the franchise agreement isn’t negotiable”. True, in many cases the agreement is standard across the network and changes may not be entertained. But that completely misses the point. The aim of legal advice isn’t just
to secure changes – it’s to ensure you understand exactly what you’re committing to. A franchise solicitor will translate the jargon, flag the obligations, and tell you what’s standard… and what’s not. They’ll help you understand how restrictive the agreement is, what happens if things go wrong, and whether the deal on paper actually reflects what you’ve been told. And if it doesn’t? That’s your opportunity
to ask more questions, clarify the terms, or adjust your expectations before the cost becomes real.
What you’ll see in a franchise agreement Franchise agreements vary in length and style, but some provisions are almost always present.
Expect to see clauses that: • Restrict your territory and activities, including what you can and can’t do during and after the agreement ends.
• Set out renewal and exit terms, which should be clearly understood to avoid surprises.
• Limit your right to challenge or sue the franchisor, including time limits on bringing claims or waivers.
• Mandate personal guarantees – meaning your liability doesn’t stop with your company.
• Disclaim previous representations, so anything the franchisor said in meetings or emails may not be enforceable if it’s not written into the agreement.
There’s no point relying on a verbal
promise that you can sell your business for a tidy profit after three years, or that you won’t be held to minimum performance targets. If it’s not in the contract, it’s not enforceable.
Financial due diligence isn’t optional either Legal advice is only half the story. Franchise investments often look more affordable than setting up from scratch – but they still involve risk. A franchise accountant will help you scrutinise the financial model, validate the forecasts, and test the franchisor’s assumptions against reality.
Natalia Shvarts QFP – Franchise Law Partner, Excello Law Having worked with franchisors, franchisees, Natalia has seen it from both sides. She is an advisor member and a board director of the BFA, a regular contributor to franchise publications and a speaker at franchise events.
You’ll want to understand: • The true cost of start-up, including working capital.
• How long it typically takes franchisees to break even.
• What happens if you underperform – or overperform.
• Any ongoing fees and what you get in return.
Franchise fees, marketing levies,
training costs, software charges – they all add up. A good financial advisor can tell you whether the numbers are sustainable and whether the model is robust and realistic based on current performance across the network.
The big picture Franchising can be a brilliant route into business ownership. But it’s not a guarantee, but when done right, it’s a structured and supportive path to business success. The reality is this: you are investing in someone else’s brand and committing to follow their system for several years. That brings benefits – and offers structure to help you stay focused on what works. Specialist legal and financial
advice isn’t a luxury. It’s a core part of your due diligence. Franchising is full of opportunity, but the people who do best are those who go in with their eyes open – and their advisors by their side. n
33
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76 |
Page 77 |
Page 78 |
Page 79 |
Page 80 |
Page 81 |
Page 82 |
Page 83 |
Page 84 |
Page 85 |
Page 86 |
Page 87 |
Page 88 |
Page 89 |
Page 90 |
Page 91 |
Page 92 |
Page 93 |
Page 94 |
Page 95 |
Page 96 |
Page 97 |
Page 98 |
Page 99 |
Page 100 |
Page 101 |
Page 102 |
Page 103 |
Page 104 |
Page 105 |
Page 106 |
Page 107 |
Page 108 |
Page 109 |
Page 110 |
Page 111 |
Page 112 |
Page 113 |
Page 114 |
Page 115 |
Page 116 |
Page 117 |
Page 118 |
Page 119 |
Page 120 |
Page 121 |
Page 122 |
Page 123 |
Page 124
