http://businessandlegal.ie/small-business-topics This presentation looks at franchising in Ireland and negotiating a franchise agreement.

1. Negotiating a Franchise Agreement-Some
Critical Questions to Ask
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2.  Franchising can be a great way to start your
own business
 But you still need to do your homework
 The franchise agreement from a major
franchisor will generally be on a take it or
leave it basis
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3.  What law governs the franchise agreement?
 What happens if the franchisee dies?
 Is there a renewal option when the franchise
agreement ends?
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4.  Can you sell the business?
 When the franchise agreement is terminated
is there a non compete clause?
 If the franchise agreement is terminated and
the premises is yours, how much will it cost
to debrand?
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5.  Is the training and system manual up to date?
 Is there an advertising fee payable?
 Is there a management services fee? How is it
calculated?
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6.  Does the franchisee have to inform the
franchisor of any improvements he has made
to the system?
 Is the franchisor the owner of the trademark?
And if not will he provide a licence to the
franchisee for the use of any trademarks and
intellectual property?
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7.  Who will own the premises?
 How long has the franchisor been carrying on
business?
 How many company owned outlets?
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8.  If the franchisor is supplying goods is there a
credit limit?
 Will a minimum stock of products be
imposed? Is a vehicle required?
 What books and records will the franchisee
have to supply to franchisor?
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9.  Will a confidentiality agreement be required?
 Who will pay for initial and ongoing training?
 Is there a territory?
 Is it exclusive?
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10.  How long will the franchise agreement last?
 Is it compliant with competition law
requirements?
 Is training provided for staff?
 Is it ongoing?
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11.  What initial stock will be needed?
 Will franchisee be required to advertise
locally?
 Does the franchisor have the right to
communicate with the franchisee’s
customers?
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12.  Has the franchisor the legal right to purchase
the franchise from the franchisee?
 Is the franchisor entitled to appoint a
manager if the franchisee dies or is
incapacitated?
 Who is entitled to terminate the franchise
agreement? On what terms?
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13.  What will happen when a dispute arises?
 Is arbitration provided for in the franchise
agreement? Litigation?
 Does the franchisee have to enter into any
restrictive covenants in the franchise
agreement?
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14.  Terry Gorry, Solicitor, has been an
entrepreneur and small business owner in
Ireland 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
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