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The checklist covers term and renewal rights, territorial exclusivity, franchise fees and royalty calculation, and advertising contribution requirements. It also addresses operating manual compliance, procurement rules, trademark use, training, reporting and software costs, non-competition and confidentiality limits, guarantees and security, insurance and indemnity, and additional obligations on accounting, site, and termination.",{"@graph":63,"@context":118},[64,80,101],{"@type":65,"itemListElement":66},"BreadcrumbList",[67,71,74,77],{"item":68,"name":69,"@type":70,"position":9},"https://docshare.wps.com","Home","ListItem",{"item":72,"name":10,"@type":70,"position":73},"https://docshare.wps.com/template/",2,{"item":75,"name":36,"@type":70,"position":76},"https://docshare.wps.com/template/forms/",3,{"item":78,"name":59,"@type":70,"position":79},"https://docshare.wps.com/template/franchise-agreement-checklist-key-review-points/282108/",4,{"url":78,"name":59,"@type":81,"image":82,"author":87,"headline":59,"publisher":90,"fileFormat":93,"inLanguage":57,"description":61,"dateModified":94,"datePublished":95,"encodingFormat":93,"isAccessibleForFree":96,"interactionStatistic":97},"DigitalDocument",{"url":83,"@type":84,"width":85,"height":86},"https://docshare.wps.com/thumbnails/franchise-agreement-checklist-key-review-points/282108.png","ImageObject",442,249,{"name":88,"@type":89},"Franzy","Person",{"url":68,"name":91,"@type":92},"DocShare","Organization","application/pdf","2026-11-02","2026-09-16",true,{"@type":98,"interactionType":99,"userInteractionCount":8},"InteractionCounter",{"@type":100},"ViewAction",{"@type":102,"mainEntity":103},"FAQPage",[104,110,114],{"name":105,"@type":106,"acceptedAnswer":107},"What should a franchisee confirm about term and renewal before signing?","Question",{"text":108,"@type":109},"Review the initial term length and whether there is a right to renew, including the renewal term and any additional fees. Confirm whether the franchisor can amend royalties and other terms upon renewal.","Answer",{"name":111,"@type":106,"acceptedAnswer":112},"What franchise fee and royalty items should be clarified?",{"text":113,"@type":109},"Identify the percentage or fee structure, define what counts as “sales,” and specify when amounts are payable. Clarify advertising or other fees, including required contributions and local spending or franchisor approval requirements.",{"name":115,"@type":106,"acceptedAnswer":116},"Which obligations related to operations and the franchise system typically need review?",{"text":117,"@type":109},"Confirm strict compliance requirements with the system and operating manual, including public standards, product/service specifications, sourcing of inventory and equipment, trademark and logo usage, hours of operation, premises maintenance, and restrictions on altering premises without consent.","https://schema.org",{"og:url":78,"og:type":120,"og:title":59,"og:site_name":91,"og:description":61},"article",{"robots":122,"canonical":78},"index,follow",{"doc_id":124,"site_id":56},282108,1790203553,{"code":4,"msg":5,"data":127},{"doc_id":124,"user_id":128,"nickname":88,"user_avatar":129,"doc_module":9,"category_id":35,"category_name":36,"doc_title":59,"doc_description":61,"doc_content":130,"file_id":131,"file_url":132,"file_type":133,"file_size":134,"view_count":8,"is_deleted":4,"is_public":9,"is_downloadable":9,"audit_status":9,"page_count":76,"language":135,"language_code":57,"site_id":56,"html_lang":57,"table_of_contents":136,"faqs":137,"seo_title":138,"seo_description":61,"update_tm":139,"read_time":9,"preview_page_count":4},2336478945519,"https://ap-avatar.wpscdn.com/davatar_085a072bc5b1113ac321206ff7593b45","Franchise Agreement Checklist  \n\n| Nelligan O’Brien Payne LLP | [www.nelligan.ca](www.nelligan.ca) |  |\n| --- | --- | --- |\n\n*While a franchise agreement is a critical document and should be carefully reviewed by a lawyer before it is signed, a franchisee should remember that:  \n1. The balance of power is usually significantly in favor of the franchisor and, therefore, so are the terms and conditions of most franchise agreements;  \n2. Not even the best franchise agreement offers absolute protection to a franchisee against an unscrupulous franchisor;  \n3. In the event of a dispute between a franchisor and a franchisee, most franchisors have a lot more time and money than franchisees to fight a protracted court battle.  \nSo, a franchise agreement cannot and should not take the place of detailed and thorough due diligence by the franchisee before entering into the franchise agreement.  \nTerm/Renewal  \n∙ Initial term how long? 5years? 10 years?  \n∙ Right to Renew? How long? 5 years? 10 years? Additional Fee Required? Can franchisor amend franchise agreement, royalties and other terms and conditions on renewal?  \nTerritory  \n∙ Exclusive or non-exclusive  \n∙ Clearly defined  \n∙ Right of first refusal for adjoining territories  \nFranchise Fees/Royalties  \n∙ What percentage?  \n∙ Definition of “sales”.  \n∙ When payable?  \n∙ Advertising or other fees? Is franchisee required to contribute to a national advertising campaign? Will advertising be conducted in territory? Does franchisee have to spend a minimum amount per annum on local advertising? Does franchisee require franchisor’s approval with respect to advertising?  \nManual/System  \n∙ Strict compliance with system, the franchisor’s specifications and the operating manual.  \n∙ Standards in dealing with public.  \n∙ Sale of products and provision of services specified by franchisor.  \n∙ Purchase of inventory, supplies and equipment from the franchisor or franchisor-approved suppliers.  \n∙ Requirement to use the franchisor’s trade marks and logos on all products.  \n∙ Hours of operation.  \n∙ Maintaining the condition of the premises and all equipment at a specified standard.  \n∙ No alteration of business premises without franchisor’s consent.  \n∙ Participation in promotion initiated by Franchisor.  \n∙ Requirement to refurbish premises from time to time.  \n∙ Is principal required to work full time in business?  \n∙ Minimum levels of working capital and/or inventory.  \n© 2003 Nelligan O’Brien Payne LLP  \n| Nelligan O’Brien Payne LLP | [www.nelligan.ca](www.nelligan.ca) |\n| --- | --- |\n\nFranchisor’s Obligations  \n∙ Assistance in site selection.  \n∙ Assistance in construction of the business premises or construction of a turnkey operation.  \n∙ Initial training. On-going training. Who pays?  \nSite  \n∙ Does franchisee have to own business premises?  \n∙ Does franchisee have to lease business premises? Will franchisee hold head lease or will franchisor hold head lease and franchisee sublease from franchisor?  \nAccounting  \n∙ Reports, records, financial statements and audits. How often must reports be submitted? Does franchisor have full access to franchisees books?  \n∙ Is franchisee obliged to purchase uniform software? What is the cost?  \nNon-Competition/Confidentiality  \n∙ Both during and after termination of franchise agreement.  \n∙ For how long after franchise agreement terminated?  \n∙ In what territory?  \n∙ Non solicitation of employees of the franchisor, the franchisee or other franchisees.  \nTrademarks  \n∙ Franchisor absolute owner of trade marks.  \n∙ Franchisee obliged to prominently display trade marks of the franchisor and use franchisor’s signage.  \n∙ Franchisee must report infringements of trademarks to franchisor.  \nPersonal Guarantee/Security  \n∙ Required? For how long?  \n∙ Is guarantee capped?  \n∙ Is spouse obliged to sign guarantee?  \n∙ Security required? General Security Agreement over all assets of the franchised business? Mortgage on home? Letter of Credit?  \nInsurance and Indemn","cbCaisb8ytaJQo0T","https://ap.wps.com/l/cbCaisb8ytaJQo0T","pdf",46839,"English","# Franchise Agreement Checklist\n## Term/Renewal\n## Territory\n## Franchise Fees/Royalties\n## Manual/System\n## Franchisor’s Obligations\n## Site and Accounting\n## Non-Competition/Confidentiality\n## Trademarks, Guarantee/Security, Insurance/Indemnity\n## Death or Incapacitation, Sale and Assignment, Termination, Miscellaneous","[{\"question\":\"What should a franchisee confirm about term and renewal before signing?\",\"answer\":\"Review the initial term length and whether there is a right to renew, including the renewal term and any additional fees. Confirm whether the franchisor can amend royalties and other terms upon renewal.\"},{\"question\":\"What franchise fee and royalty items should be clarified?\",\"answer\":\"Identify the percentage or fee structure, define what counts as “sales,” and specify when amounts are payable. Clarify advertising or other fees, including required contributions and local spending or franchisor approval requirements.\"},{\"question\":\"Which obligations related to operations and the franchise system typically need review?\",\"answer\":\"Confirm strict compliance requirements with the system and operating manual, including public standards, product/service specifications, sourcing of inventory and equipment, trademark and logo usage, hours of operation, premises maintenance, and restrictions on altering premises without consent.\"}]","Franchise Agreement Checklist - Key Review Points | PDF",1789570251]