What restrictions will I have to agree to operate under as a franchisee?

There are a number of restrictions that you will have to comply with when operating a franchise business. One of the most important a franchisor will need to impose relates to the franchisee’s use of the franchisor’s name and trading style or logo.  Whilst an exclusive and protected brand is to the franchisee’s advantage, to prevent other franchisees using it inappropriately a franchisee will usually be licensed to use the trade marks on very restricted terms.  A franchisee can expect a restriction relating to its use of the franchisor’s confidential information and know-how, including the systems that will enable the franchisee to effectively operate the business.  To maintain the standard of service and/or quality of goods provided under a franchise concept, a franchisee may be required to purchase certain items exclusively from the franchisor or a nominated supplier. Similarly, a franchisee is usually required to meet certain minimum standards covering the basic operation of the business. These restrictions are needed to help the franchisor ensure that there is consistency across its franchise network in terms of the quality of goods and/or services provided by all its franchises.