Read the small print (Daily Mail franchise story)

Read the small print

Daily Mail  

By: Linda Whitney

YOUR franchise might be the biggest investment you ever make, so ensure that you understand your legal position. As a franchisee, your only rights are those set out in your franchise contract.

This is a civil contract, signed by you and the franchisor. Once it is signed, you are bound by its terms.

So, if you are considering a franchise, ask for a copy of the contract before you sign and take it to a franchise lawyer.

Using a specialist franchise lawyer can save you money because they will be familiar with the typical contract and will know what to look for — both what is included and, sometimes more important, what has been left out. A family solicitor unfamiliar with franchising is unlikely to have this level of expertise.

'This is a specialist area, and engaging a lawyer with franchising knowledge can help control your costs and make sure you get valuable and relevant advice,' says Angus MacLeod, head of franchising at Wright, Johnston & Mackenzie solicitors in Glasgow.

Many franchise lawyers will check contracts for a fixed fee, typically between £400 and £700.

FOR a list of British Franchise Association affiliated legal specialists, see www.thebfa.org Wright, Johnston & Mackenzie: 0141 248 3434.  Click here for franchise legal advice for franchisees or legal advice for franchisors. 

'I'M BUSIER THAN EXPECTED AND AM NOW RECRUITING'

Daily Mail franchise story


BUSINESS is booming for lettings agencies, and many are franchises.

'I've been far busier than I expected since I set up in November,' says Lee Shuell, the Belvoir lettings agency franchisee for Oldham.

Lee, 36, was made redundant by a mortgage company last year and used his experience as a buy-tolet landlord to set up a lettings and property management business.

'There are lots of new landlords as couples with two homes move in together and let the empty property, and people who can't sell do the same.

'People still needing to move, but unable to buy, are renting.

'I'm taking on my first fulltime member of staff.

Redundancy turned out to be an opportunity for me.' Lettings agency franchises suit people who can sell and maintain relationships with customers.

'Unlike property sales, lettings are buoyant,' says Dorian Gonsalves of Belvoir.

'You earn your money by charging a percentage of the monthly rent, so you must be able to build a relationship with tenants and landlords.'

You need no experience in the sector — the set-up cost of £22,500 includes training.

Lettings specialist Martin & Co is looking to increase its 160 franchised offices by 30 to 40 this year. The franchise fee is £18,500.

Relocating locum and contract workers have meant more business for Medics On The Move, which specialises in medical and professional staff.

'We help clients with renting homes, managing properties and finding rented accommodation,' says Carole Stubbs, of Medics On The Move. The franchise costs £25,995.

BELVOIR: 01476 570 000. Martin & Co: 01202 292 829. Medics on the Move: 0870 350 1858.



Franchise


PET care franchise Animals at Home (AAH) has signed a deal that means Thomson and First Choice Holidays are recommending AAH to its staff and the 900,000 customers whose pets need care while they go away.

'The increase in business means we'll need at least 14 more franchisees,' says Denis Chirgwin of AAH.

Franchisees provide services such as animal feeding, pet transport and finding foster homes for dogs while owners are away.

Set-up costs: £14,000.

Tel: 08701 126613.

SEEN a great franchise advertisement or exhibition stand? Tell the franchisor to enter the 2009 Franchise Marketing Awards (see www.franchiseinfo.co.uk for details). Closing date is February 13.

DIARY dates: The British & International Franchise Exhibition, Olympia, West London, runs from March 20 to 21; the British Franchise Exhibition, SECC, Glasgow, is on June 5 and 6; and the National Franchise Exhibition at the NEC, Birmingham, runs October 2 and 3...