These are the questions to ask before you sign a franchise agreement for real estate.

Site selection and understanding the franchisor’s rules is one of the most important aspects of buying a franchise.
You have many questions to ask your franchisor, regardless of whether you are interested opening the next RE/MAX franchise or CENTURY 21 franchise.
Questions to ask your franchisor
Leases, purchases, and approvals To operate your franchise, will you need to lease or buy space? Your franchisor will need to approve your purchase or lease agreement before you can start operations. Are there any terms the franchisor may require to approve your leaseor purchase?
Site selection. What role will your franchisor play in finding a site? Will the franchisor help you find space or locate your site? Is the franchisor required to approve your site
Mandatory third-party use Your franchisor may require you to hire specific architects, builders, or other professionals to design your site. Is your franchisor required to play any role in the actual construction of the site? If so, how much will it charge?
Fees and real estate brokers Your franchisor may require you to work with specific real estate brokers. Who is responsible for paying those fees if your franchisor requires it?
Initial equipment and fixtures. Is the franchisor involved in helping me purchase my initial equipment and fixtures for my new space?
It is crucial to get answers to the above questions. Failure to do so can lead to serious financial and legal problems.
It is important to understand the potential obligations you may have regarding real estate that you will use for your franchise business. This is especially true if your franchisor wants to impose certain real estate requirements on you. These issues are often overlooked, forgotten, or misunderstood.
Medalist Legal is founded by Patrick MacQueen in Chandler, Arizona.
This article is intended to be informational only and should not constitute legal advice. It is a good idea for franchise agreements to be reviewed by an attorney before signing.