The franchise business will contact you by means of email and/ or telephone only to the email address and phone number you have provided.
By submitting the enquiry form you are consenting to send your personal information to the selected franchise business.
You also agree to receive further newsletter email marketing from What Franchise.
What information must a franchisor provide to a prospective franchisee?
John Pratt writes:
In many countries, franchisors are required to provide detailed information to prospective franchisees - indeed, in America the detail that has to be provided is eye watering and usually amounts to over 200 pages of disclosures.
In the UK there is no legal requirement on franchisors to disclose information to franchisees, although generally the provision of information, provided it’s true and accurate, is helpful and reduces the risks of a dispute arising.
Franchisors who are members of the British Franchise Association are, however, required to provide basic disclosure information to prospective franchisees because franchisors have to comply with the bfa’s code of ethics, which requires franchisors to provide ‘full and accurate written disclosure of all information material to the franchise relationship within a reasonable time prior to executing the franchise agreement’.
The bfa has provided guidance as to what should be disclosed to prospective franchisees in its guide to the code of ethics.
In summary, franchisors are required to inform a prospective franchisee concerning the business and its financial position, the people involved in the franchisor company, the franchise proposition, details of its franchisees, financial projections, the franchise agreement and other contractual documentation.
John Pratt is senior partner at specialist franchise firm Hamilton Pratt and has advised franchisors for over 25 years.
You might also be interested in
Will a franchisor tailor its initial training to me or will it only provide set instruction that covers all aspects of the business?
Answered by Alan Wilkinson
Alan Wilkinson writes: When a franchisor recruits franchisees, it will have a set profile of the type... read more
Answered by John Pratt
John Pratt writes: There may be none if you’re not suited to dealing with businesses. Many people like... read more
Answered by Louise Harris
Louise Harris writes: Not all franchises are based on territories. Some may be split into business sectors,... read more
Answered by Renata Selley
Renata Selley writes: Your ‘year-end’ is the date when your franchise accounting period ends. Communication is king... read more
Exciting Franchise Opportunities
Companies to Consider
ServiceMaster Clean Commercial
£76,903 gross profit in year 2
Jackson Fire & Security
Stagecoach Performing Arts
Up to £230,000
In excess of £70,000
Business Sales Plus
Expense Reduction Analysts...
Through major banks
Get expert franchising news delivered straight to your inbox
Franchise news, advice and new opportunities delivered weekly.
Must Read Articles
Added one year ago | 2 min read
Added one day ago | 2 min read
Added about 2 days ago | 2 min read
Find your next business opportunity
Search 100s of UK franchises and become your own boss today.
What Franchise Newsletter
Keep up to date with all the industry news