We have experience acting on both sides of the franchise model, for both the franchisor and the franchisee, therefore understanding what makes a good franchise tick.

Key points to consider in any franchise arrangement are:

- The success of the franchise to date. Is it performing already or are you the test-case and risk taker?

- Does the franchise have a comprehensive operational manual? This is the heart of the franchises success therefore it should cover every aspect of the business and its operation.

- Does the franchise agreement fully cover the relationship between franchisor and franchisee? What are each parties responsibilities and are they by way of a partnership or a one-sided document in favour of the franchisor.

- What fees are payable by way of sign-up fee, ongoing fees, and who is responsible for their management in cases such as marketing levies that may be applied across regions greater than that your outlet is based in?

- Is there any ability to negotiate terms?

- Is there a support network in place if the franchisee strikes difficulties? Many successful franchises have operational managers whose sole responsibility is to assist franchisees with management issues.

- As a package does the franchise model being offerred stack up? This is most likely the key question to ask, and often requires independent advice from your accountant as they are able to run a range of measures across the business being offerred to assess not only financial viability but compatibility and any practical issues.

Historically we have seen many people becoming over enthusiastic about a business without realising the range of factors which require consideration prior to signing on the dotted line. Typically the passion outweighs these considerations and the commitment that is being made and also what the business [and personal life] may look like going forward.

Very little consideration is given to any exit strategies.

Edward Christian & Co would be pleased to provide any necessary guidance in the area of franchising, including assessment of any particular franchise being persued, funding applications to banks, or negotiating the terms of the franchise agreement. We have been involved in acting for both Franchisors [the seller/owner of the franchise] and the franchisee [the operator of the franchise]. In fact Eddie has been a franchise operator in the hospitality industry himself prior to buying the franchise himself resulting in him becoming the franchisor!

We have been involved in a range of franchise negotiations including - McDonald's, Carpet One, Quinovic Property Management, Realty Returns, Subway, Valentines, Esquires Coffee, Jamaica Blue, Robert Harris Coffee Shops, Foodstuffs Supermarkets [Co-operative], various real estate and cafe outlets. We are currently looking at an international hospitality franchise for a client.