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Franchises: Legal issues
Buying a franchise is not like buying goods that are covered by consumer laws. If you don't like it you can't take it back and get a refund. When you buy a franchise you sign an agreement that is a legal contract. If you don't like it once you have signed, your only recourse is to challenge it in the civil courts, which can be difficult and costly.
Before you sign any franchise contract check it out yourself and take it to a solicitor who specialises in franchising. The British Franchise Association(BFA) has lists of specialised solicitors who may be quicker and better at spotting potential problems, or alternatively, browse our solicitors directory for one to suit your needs.
But do an initial check yourself. All franchise contracts should specify:
The franchise period and renewal details Your territory Training arrangements Arrangements for selling the business – if you want to What happens if you die – it happens Details of all fees – check for hidden extras Your obligations and those of the franchisor startups.co.uk
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