Thinking about a cleaning franchise

A cleaning franchise lets you run your own business under someone else's name and system. You pay the franchisor for that, at the start and usually for as long as the agreement runs. It helps to know the rules before you commit.

What the law asks of a franchisor

In the UK, franchising comes under the general law that covers any business contract. Nelsons, a firm of solicitors, says this is one reason franchise agreements are often long.

Each franchisor decides for itself whether to tell you how its franchisees are doing. The British Franchise Association says this kind of disclosure is voluntary in the UK, and it encourages buyers to ask questions.

You buy as a business

The Consumer Rights Act protects people buying for themselves, outside their trade or business. Someone buying a franchise is buying for a business, so those consumer protections generally do not cover the franchise agreement.

Other law still applies. Under the Unfair Contract Terms Act, some terms that limit a business's liability must pass a test of reasonableness. And misleading advertising aimed at traders is banned under the 2008 Business Protection from Misleading Marketing Regulations.

What a franchise advert must tell you

The advertising rules for business opportunities are in section 20 of the CAP Code, which the Advertising Standards Authority enforces. Before you commit, the advertiser must give you three things:

Under the same rules, an advertiser must not quote earnings that are overstated or unrepresentative. It must not exaggerate the support on offer either.

What British Franchise Association membership means

The British Franchise Association, often called the bfa, is a membership body for franchisors. A franchisor joining it must show four things: that the business is viable, that it can be passed on to franchisees, that it discloses its proposition clearly, and that it will follow the bfa's Code of Ethics.

The bfa lists its members at four levels: Emerging, Expanding, Established and International. Some franchisors' own pages still use older names for these levels.

The bfa offers its dispute-resolution route only where the franchisor is a member. Franchisees of a member franchisor can join the bfa free.

Franchisors pay to be members, and the bfa sells them listings on its website. Read its member pages as information supplied by the franchisor.

Questions to ask before you sign

You can ask a solicitor who knows franchising to read the agreement before you sign it.

Useful links