Before entering into a franchise agreement, you should obtain the following information:

• A complete description of the business.
• The track record of the franchisor and current motives for franchising.
• Evidence of the franchisor's strategic plan - where is the business heading.
• What the franchisor offers under the agreements, such as name, product, reputation/goodwill, site location, advertising budget and back-up assistance.
• Intellectual property rights and obligations.
• Fees involved, including up-front capital and percentage of takings payable to the franchisor.
• Terms of sale of goods supplied by the franchisor and if you can purchase from outside the franchise network.
• Success/failure of other franchisees in the same business.
• Obligations upon termination of franchise.
• Guidelines for sale of the franchise.
• A franchise operations manual, if available.
• The franchise agreement document and the period of franchise.