Franchise Blog

Ryan Knoll over at FranchisePundit.com posted a link to an interesting article on Canadian newspaper website TheStar.com about the importance of reviewing the legal documents that are given to you before making the life-changing decision of buying a franchise.

Although the article is for potential franchise buyers in Canada, the rules still apply here in the US. Here is a short snippet:

A franchisor is required to provide it to you at least 14 days before you sign any binding agreement in relation to the franchise or before you pay any monies or deposits to the franchisor or its affiliates in relation to the franchise. This is a key requirement of Ontario’s franchise disclosure legislation, which sets out the details of what needs to be contained in the Disclosure Document.In addition to the main part of the Disclosure Document, the package will include a copy of all agreements that you will be required to sign as part of your purchase of the franchised business, including the franchise agreement.There may likely be some other documents, such as a general security agreement, lease agreement, sublease agreement, and possibly several others.The most important document, though, is the franchise and disclosure agreements.

If you’re considering buying a franchise business, that is a must read! Click here to read the full article.

Filed under: Buying a franchise, Franchise Advice, Franchise Talk