You can obtain information on franchising from: 1) a directory of franchises, 2) the disclosure document, 3) current franchisees, 4) other references, such as SBA, FTC, Better Business Bureau, local Chambers of Commerce, 5) professional advisors and 6) reference materials on franchises from the local library.

Your franchise package should contain the following information.

• The full initial costs, and what it covers.
• Licensing fees.
• Land purchase or lease.
• Building construction or renovation.
• Equipment.
• Training.
• Starting inventory.
• Promotional fees.
• Use of operations manuals.
• Continuing costs related to the franchisor.
• Royalties.
• Ongoing training.
• Cooperative Advertising fees.
• Insurance.
• Interest on financing.
• Requirements regarding purchasing supplies from the franchisor, and if the prices are competitive with other suppliers.
• Restrictions as they apply to competition with other franchisees.
• Terms covering renewal rights and resell of the franchise.

• Hold harmless clauses - may require that you release the franchisor from specific acts or violations of state laws.
• Integration clauses - may prevent you from successfully suing for any deceptions preceding the signing of the contract.

Other important clauses to consider deal with severance, renewal and transfer of the franchise.

Again, use professional help when examining the franchise contract. And, remember some of the contract terms may be negotiable. Find out which terms are negotiable before you sign; otherwise, it will be too late.