Franchising in Ireland-30 Questions to Ask


Published on This presentation looks at franchising in Ireland and negotiating a franchise agreement.

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Franchising in Ireland-30 Questions to Ask

  1. 1. Negotiating a Franchise Agreement-SomeCritical Questions to Ask
  2. 2.  Franchising can be a great way to start yourown business But you still need to do your homework The franchise agreement from a majorfranchisor will generally be on a take it orleave it basis
  3. 3.  What law governs the franchise agreement? What happens if the franchisee dies? Is there a renewal option when the franchiseagreement ends?
  4. 4.  Can you sell the business? When the franchise agreement is terminatedis there a non compete clause? If the franchise agreement is terminated andthe premises is yours, how much will it costto debrand?
  5. 5.  Is the training and system manual up to date? Is there an advertising fee payable? Is there a management services fee? How is itcalculated?
  6. 6.  Does the franchisee have to inform thefranchisor of any improvements he has madeto the system? Is the franchisor the owner of the trademark?And if not will he provide a licence to thefranchisee for the use of any trademarks andintellectual property?
  7. 7.  Who will own the premises? How long has the franchisor been carrying onbusiness? How many company owned outlets?
  8. 8.  If the franchisor is supplying goods is there acredit limit? Will a minimum stock of products beimposed? Is a vehicle required? What books and records will the franchiseehave to supply to franchisor?
  9. 9.  Will a confidentiality agreement be required? Who will pay for initial and ongoing training? Is there a territory? Is it exclusive?
  10. 10.  How long will the franchise agreement last? Is it compliant with competition lawrequirements? Is training provided for staff? Is it ongoing?
  11. 11.  What initial stock will be needed? Will franchisee be required to advertiselocally? Does the franchisor have the right tocommunicate with the franchisee’scustomers?
  12. 12.  Has the franchisor the legal right to purchasethe franchise from the franchisee? Is the franchisor entitled to appoint amanager if the franchisee dies or isincapacitated? Who is entitled to terminate the franchiseagreement? On what terms?
  13. 13.  What will happen when a dispute arises? Is arbitration provided for in the franchiseagreement? Litigation? Does the franchisee have to enter into anyrestrictive covenants in the franchiseagreement?
  14. 14.  Terry Gorry, Solicitor, has been anentrepreneur and small business owner inIreland for over 25 years If you are thinking about buying a franchise.. Free, no cost consultation with Terry Call: 046/ 95 49 614 086/81 21 797 terry@businessandlegal.ie