Entries by Hamilton Pratt

What restrictions will a franchisor place on the business I run?

There will be a huge number of restrictions because franchising is about the franchisor developing systems and requiring franchisees to work strictly to those systems.  There are a number of reasons for that.  The first is that the franchisor will have, or should have, established that compliance with its systems means that franchisees will have […]

Why should I invest in a franchise instead of setting up my own business?

Unfortunately the statistics show that the overwhelming majority of independent businesses fail within three years.  The converse is true in relation to franchising.  Relatively few franchise businesses fail and that is because franchising involves, or should involve, a franchisor, not only establishing a successful business, but putting in place the systems that apply to that […]

What should I expect from a franchisor “discovery day”?

If you have been invited to a franchisor’s discovery day, it means that you have shown interest in the franchise and the franchisor, based on any information he has about you, believes that you might be a suitable franchise candidate.  Bear in mind that the fussier a franchisor is in recruiting franchisees, the better. The […]

If a franchise agreement is non negotiable, why do I need a lawyer to review the document before I sign on the dotted line?

Franchisors generally say that their franchise agreement is non negotiable.  There are a number of reasons for that. First they have spent a great deal of money having the agreement prepared hopefully by an expert franchise lawyer and they do not want to spend more money negotiating the terms of the franchise agreement with each […]

What does a typical franchise start-up fee include?

In franchising, there are both continuing fees and an initial fee – the latter is the fee that you will pay to the franchisor on entering into the franchise agreement.  You need to look very carefully at that fee because in some franchises the franchisor charges an initial fee, sometimes called a “licence fee” and […]