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What You Need to Know Before Signing a Franchise Agreement

If you are about to sign a franchise agreement, about to pay money to a franchisor or you are about to a franchise discovery day there are a few things you should know throughout this exciting process. Your primary step before you sign a franchise agreement is conducting due diligence. Let's take a look at what I mean by due diligence. When conducting due diligence you should be investigating what legal documents you are signing and what agreements you are committing yourself to when you become a franchisee. Your primary tool and vehicle for conducting due diligence is the franchise disclosure document (FDD) which must be provided to you 14 days before you sign a franchise agreement or before you pay any money to the franchisor.

You will need to speak to your franchise attorney about the following issues:

I discuss these issues and more in my book "The Entrepreneurs Guide to Purchasing a Business or Franchise". Request a complimentary copy of the book by filling out the request form or by calling us directly at 1.800.976.4904.

Charles Internicola

by Charles Internicola
National Business and Franchise Lawyer

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