Making note of any discussions you have with the franchisor. Ask the franchisor to confirm any representations it makes in writing (e.g. claims of how much you can expect to earn each week) .
Discussing with the franchisor upfront what your rights are in matters such as leases and intellectual property if the franchisor becomes insolvent.
Reading the franchise agreement, disclosure document and other contracts (including any leasing and financing arrangements) carefully.
Talking to as many current and past franchisees as possible (their contact details must be included in the disclosure document).
Obtaining advice from an independent legal adviser, business adviser and/or accountant to identify the risks associated with entering into the franchise agreement and develop a risk management plan.
Having a contingency plan in case things don’t work out.
