Assess the franchise opportunity to ensure it aligns with your business goals and values.

Review the Franchise Disclosure Document (FDD) thoroughly.

Understand the franchisor’s reputation, success rate, and support system.

Research the franchisor’s financial stability and history of legal disputes.

Consult with a franchise attorney or business advisor for expert advice.

Carefully review the entire franchise agreement

Ensure clarity on the franchise term (duration) and renewal process.

Verify territorial rights and exclusivity.

Understand initial and ongoing franchise fees (e.g., franchisee fees, royalty payments, advertising fees)

Review the franchisor’s obligations, including training, marketing, and operational support.

Assess the franchisee’s obligations, such as adherence to the franchisor’s brand standards, operations manual, and reporting requirements.

Clarify any restrictions on transferring or selling the franchise

Review provisions related to franchise termination, including cause and notice periods

Understand the non-compete clauses and restrictions after termination or expiration.

Ensure intellectual property rights, including trademarks and patents, are clearly defined.

Review indemnity and liability clauses to understand the financial risks.

Evaluate the financial projections and performance metrics included in the franchise agreement.

Review the operational manual provided by the franchisor

Ensure operational standards, including site selection, equipment, and inventory requirements, are clearly defined.

Confirm the franchisor’s marketing, advertising, and promotional support.

Understand staff training programs and ongoing education requirements.

Ensure health, safety, and legal compliance requirements for operating the franchise are covered.

Review the dispute resolution procedures, including mediation or arbitration clauses.

Ensure that jurisdiction for legal disputes is specified (location of franchise operations or franchisor’s headquarters)

Clarify the process for resolving conflicts related to performance, payments, or other operational issues.

Ensure all necessary legal documents are completed, signed, and notarized if required

Both parties (franchisee and franchisor) sign the final agreement.

Retain a copy of the signed franchise agreement and all supporting documents.

Confirm that both parties are clear on the terms of the agreement and their respective responsibilities.

Register the franchise agreement with the appropriate regulatory authority, if required.

Set up the financial and operational systems for running the franchise.

Notify relevant authorities (local business registrations, tax authorities) of franchise operations.

Attend initial training and onboarding programs provided by the franchisor.

Begin preparations for site establishment or renovation, as specified in the agreement.