Tips for Franchisees

• Consider if the franchise is a good business model. Consider if it is a profitable business model. Consider how easily the business model can be duplicated.
• Consider your own skills and abilities.
• Consider whether you like the type of business (products/services).
• Franchising is long term investment. Make sure you chose a business and sector you are passionate about and can stay in for long period.
• Ask a trade mark attorney to check the status of the trade marks (brand). Franchisors with unprotected trade mark may pose risks for your investment.
• If you are buying an existing franchise, ensure that your Franchisor complies with the CPA, ask an attorney to review your Franchise Agreement.
• Conduct full due diligence. Obtain full information to make best decision.
• Do not be afraid to ask any questions. Talk to other franchisees. Apart from finances, ask about possible labour issues, possible issues with Landlord, compliance with health / safety regulations, insurance issues or claims, security etc. Know what you are buying into.
• Check out the location – conduct your own research on exposure of location.

– Published by our Intellectual Property Department.