After preparing the agreement, it is important to record upfront that the franchisee acknowledges that prior to signing the agreement, he/she first, has read the provisions of the agreement and fully understands it.
The franchise package (primarily the Franchise Agreement together with the Franchise Disclosure Document) must be provided to a prospective franchisee at least 14 days prior to a franchise or other binding agreement is entered into.
Where appropriate, members and shareholders of companies and corporate entities which wish to sign up as franchisees should be requested to sign suretyship/guarantee agreements, making them personally liable and accountable to the franchisor.
