As a potential franchisor, you may not be able to understand all the issues or have an independent frame of reference to know what options are available. The lawyers, knowledgeable in the law and previous agreements, will often give you advice and guidance. But without being able to evaluate business options, conduct research and fully explore the strategic considerations that most of these provisions require, the Franchise System will often end up serving as a legal tool for expansion rather than what it should really be, a business structure for expansion.

Consider the elements that you should offer future franchisees in a franchise system. One of the most important elements is your experience in running the business to be franchised. If that experience does not exist, or is so minimal as to be insignificant.

When carrying out a suitability assessment, we review business and financial comparisons. The comparisons used depend on the industry segment, company and other regulations, but broadly fall within a few.