Taking Instructions on a Franchise Agreement - Checklist

Checklist

Checklist

Notes

PARTIES

Full name and address of franchisor

If the franchisor is a limited company, give its registered office, registration number and accounting date

If the franchisor is not a company, what is the date when it prepares its accounts?

Will franchisees be sole traders, partnerships, limited liability partnerships or limited liability companies?

Will a guarantor be required of the franchisees obligations?

If franchisees are limited companies, does the franchisor require a personal guarantee from the main shareholder of the company in order to recover any potential damages?

Is the franchise required to be owner-operated or is it a management franchise?

GENERAL

Brief description of the franchisor's business and proposed franchise business if different

How long has the franchisor been carrying on the business in the proposed franchise activity?

Are there any secret/unique methods, formulas, techniques involved in the running of the franchise business?

How many company-operated territories are there?

How many pilot franchises?

BACKGROUND

Under what name will the business be carried on?

Is it proposed that the franchisees should trade under the same name? If different, give that name

Is the franchisor the exclusive owner of the trade name or proposed trade name?