Understanding Franchise Documents in New Zealand

With a well-known product or service and an effective system, franchises in New Zealand can be a great choice to consider. Before you invest in a  franchise opportunity, you should understand the important documents involved in buying a franchise. 

Laser Clinics New Zealand shares three of the essential franchise documents you’ll need to review:

1. Franchise Agreement - this is the binding document between the franchisee and the franchisor. The Franchise Agreement must stipulate the following:

• The location of your franchise business in New Zealand and territorial matters.
• The time and period of the contract. 
• Termination or cancellation conditions, and dispute resolutions.
• Any fees involved in investing in the franchise, including franchise fees, establishment costs, and ongoing expenses. 

2. Franchise Disclosure Document - this is a document that contains information about the franchise to help you in deciding if it's the right franchise opportunity for you. For example, the following kinds of information may be disclosed in the agreement:

• How long has the franchise existed in New Zealand and around the world if they are a global brand?
• Information on financials, including fees and cost structures.
• Current franchises, including contact details and locations.
• Any intellectual property registered by the franchise

3. Franchise or Operations Manual  - this document details the operating methods of the franchise system and requirements for franchisees. This manual provides franchisees with a document you can actively refer to, helping you replicate the franchise’s systems of operating. The manual may include: 

• Day to day operation guidelines.
• Branding and Reporting requirements.
• Details in running the franchise systems.
• Suppliers and distributors' information.
• Legal compliance and Health & Safety standards.
• Product or Service pricing. 
• Key Performance indicators and other helpful resources. 

 

Helpful Tips Before Buying A Franchise

Of course, you want to be extremely sure that you’re working with a legitimate franchise business and not some fly-by-night operations that are after your money. Take note of these tips to guide you as you read through all the documents presented to you by the franchisor.

• Do not allow the franchisor to rush or pressure you into signing any franchising agreement. You need to understand what you are agreeing to.
• Read your disclosure document and any information within it.
• Ensure that all claims are written down, preferably in the franchise agreement.
• Always get professional advice before signing any documents

If you’re ready to invest in a successful franchise business for sale that will provide you with the necessary franchising documents to review, reach out to Laser Clinics New Zealand. With over 200 clinics globally, we have created a large customer following by providing affordable, accessible, and reliable treatments tailored to every individual’s concerns. 

Download our prospectus or contact us through our website for more information.