Does your franchise agreement include these 7 essentials?

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Signing your agreement is arguably the most important step to becoming a franchisee. After you’ve done your initial assessments it’s time to sit down for serious discussions about the way forward with your potential partner. And since the agreement is a legal and binding document, making sure you’ve got all your bases covered is a really big deal. So with that said, here are seven essential items that should be clearly detailed in your franchise agreement.


Your franchise agreement must clearly designate the territory in which you will operate and also outline your exclusivity rights. The type of exclusivity you will be afforded will play a critical role in your potential profitability and you should be aware of what status you’ll be enjoying long before signing your agreement. However, make sure that your exclusivity rights are clearly stipulated in your contract and that you understand them.


This section details how franchisees are expected to run their outlets, which will largely be based on the operations that are implemented by the franchisor. Be advised that franchisors will not always place the same requirements on themselves as they do on franchisees, so be sure to enquire why certain things are expected from you if they don’t seem practical.


As a franchisee you are essentially mimicking a tried and tested business model. To do this successfully, you will need to undergo continuous training to maximise your franchise’s chances of success. Look out for the training clause in your contract and be sure that it covers the kind of support you can expect from your franchisor.

Contract duration

Your contract will detail the duration of the agreement between yourself and the franchisor. Contracts are usually valid for one calendar year with exceptions in certain situations. Franchisors and franchisees who have been in partnership for some years may have contracts that stipulate much longer terms. 

Fees and royalties

Franchises typically have upfront startups costs and ongoing royalty fees that franchisees are expected to pay. This can vary greatly from franchisor to franchisor and that’s why your initial assessment of potential partners is so important. When it comes to your contract, make sure that the figures and terms are what you expected and have a financial advisor look at the contract if you are uncomfortable with anything.


Placing your franchise on the map will be a key aspect to your business’ growth and you should expect your franchisor’s marketing machine to make a huge contribution towards this. Your agreement should cover all aspects of marketing tools and support you can expect to place your new business on the map.

Exit clause

Every franchise will have its own resale or termination clause. Franchisors may want to terminate their agreement with you for a number of reasons (misrepresentation of profits, placing the brand reputation at risk, etc.). Make sure you understand the stipulations set in your contract and that you are allowed to exit the agreement yourself if the franchisor is in breach of contract. Again, seek the advice of an expert if you are uncertain about anything.

Talk to us about owning your very own tutoring franchise

These seven items by no means exhaust the list of inclusions you should expect from your franchise contract. Make sure you download our guide to running your very own franchise business for more insights and tips to the world of franchising. If you are considering a franchise business in the education sector then get in touch with us to learn more about the prospects for success in this fast-growing sector. Boost Education is one of the UK’s most loved after school tutoring brands. 

Our franchise model is built on years of experience in education and our growing number of centres is a testament to the quality of education parents and children have come to expect from us. If you’re considering a tutoring business for your franchising aspirations, then talk to us today!

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