This should be inspected before you sign the franchise agreement. Premises Site selection can be critical to the success or failure of a franchised business. The franchisee often sub-lets the premises from the franchisor. Should the franchisee breach the franchise agreement, it is likely that the sub-lease will also be breached. All required permits, authorities and licences will also need to be checked.
Franchise agreements vary considerably between structures.
The franchise agreement will be subject to payment of stamp duty in some states. Franchisors and franchisees must consider whether the franchised business will be profitable once all fees have been taken out. It is wise in this instance to also consult an accountant experienced in this field. Term Ensure that you are entitled to a further term lease. Check that there is no discrepancy between the term of the lease held by the franchisor and the term of the franchise agreement.