Before Buying a Franchise: Get a Disclosure Document

The disclosure document includes a list of current and former franchisees. You can learn about how a franchisor operates by talking to some of them before you invest. Some questions to ask include:

  • Were there unexpected costs or additional unexpected investments?
  • Do you have to purchase a minimum amount of merchandise/materials each year?
  • If there is a minimum sales quota, how difficult is it to achieve?
  • Are products/equipment supplied by the franchisor satisfactory and delivered on time?
  • Did you have adequate support when the business first opened?
  • Was the training adequate, and were employees included?
  • How are disagreements with the franchisor handled?
  • If you could change anything in your contract what would it be?
  • What do you like/dislike about the franchisor?
  • How long did it take you to start making money, and was it more or less than you expected?
  • Would you enter into an agreement with this franchisor again?

These questions are important to ask for any franchise agreement. If you need help with franchise law or before signing any contracts, you should contact Law Works the franchise dispute lawyers in Mississauga.

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