Check the fine print (Daily Mail franchise story)

Check the fine print

By: Linda Whitney

SETTING up in business with a franchise is exciting, but in the rush, always check your rights.

As a franchisee, the only rights you have are those set out in the contract you sign when you take on the franchise.

But you should beware of these contracts, says Geoffrey Sturgess, franchise specialist lawyer at Blake Lapthorn in Southampton.

'Normally franchise agreements are extremely one-sided, in favour of the franchisor,' says Mr Sturgess. 'Franchisees get none of the protection afforded to consumers or employees.' There is no statutory 'cooling off' period after you sign the contract and if you feel it is unfair once you've signed or that the franchisor isn't living up to the terms of the contract, your only legal remedy in most cases is to sue in the civil courts, and very few franchisees win.

So get the contract checked before you sign up. Take it to a lawyer experienced in dealing with franchise contracts. For a list of British Franchise Association affiliated lawyers, see thebfa.org.

Many will check the contract and report back for a fixed fee of around £500-700.

But the report may only tell you that the contract is more or less in line with other franchise contracts, warns Mr Sturgess.

'Better to read it through first yourself and make a list of questions you want answered by the franchise lawyer. It may well cost you more but you should get more useful advice.' He adds: 'Don't assume the franchisor will only act reasonably. Talk to as many of their franchisees and ex-franchisees as possible. A good franchisor and a good business are much more important than a good agreement.' Many franchisors advise aspiring franchisees to have their contracts legally checked. 'I feel strongly about contracts — there are some rip-off contracts out there, so ours sets out exactly what you have to pay and when,' says Sara Pope, of cleaning services franchise Pink Ladies.

'Our contract was drawn up by a BFAaffiliated franchise lawyer, then checked by another, but we still recommend every future franchisee to get it checked for themselves,' she says.

The Pink Ladies franchise costs £15,000 for the cleaning service alone, and an extra £10,000 for additional carpet cleaning and ironing services, though that may be reduced for existing cleaning franchisees.

BLAKE Lapthorn 02380 857 044, Pink Ladies 01621 828 833.