How to use this list
Take this list to every meeting. Write down the answers or ask the brand to email them. A brand that is open about its business will answer without anger.
If an answer is vague, ask again. If it stays vague, count that as a no.
Track record and numbers
These questions tell you how the brand has done for others.
- How many outlets are running now, and how many have closed in the last three years?
- Can I have the names and phone numbers of all current franchisees, not a chosen few?
- What sales do your average outlets make in a town like mine? Is this in writing?
- How long does a typical outlet take to cover its costs?
Money
These questions find out what you will really pay.
- What is the total cost, item by item, in one written list?
- Which costs come again every month or every year?
- What is the royalty and the marketing fee, and on what amount are they charged?
- Can you raise fees or change rules during the term?
Territory and supply
These questions show how much freedom you will have.
- Is my territory exclusive, and is it written on a map or pin codes?
- Can you sell online or open another outlet near me?
- Must I buy goods only from you? What are the prices compared with the market?
- What happens if your supply is late or short?
- What training and support will I get, and for how long?
Term and exit
These questions show what happens if things go wrong.
- For how many years is the agreement, and how do I renew?
- Under what conditions can you end the agreement, and with what notice?
- If I leave, what do I get back: deposit, stock, equipment?
- Can I sell or transfer my outlet, and what fee will you charge?
- After I leave, am I stopped from running a similar business?
Disputes and the brand name
The last two questions protect you in court and in the market. You can search public trade mark records of the Government of India to see if a brand name is registered.
- Where and how will disputes be settled?
- Who owns the brand name and trademark, and is it registered in India?