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Franchise Application Form
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A Franchise Application Form helps you to collect information about a prospective franchisee before agreeing to sell them a franchise. Using a Franchisee Application Form you can conduct background checks on the prospective franchisee, which will help you decide whether this is someone you want to do business with.
FRANCHISE APPLICATION FORM
Summary If you offer business opportunities to people using a franchised structure, then franchise application forms may be used as part of your franchise documents pack. These forms help you to accumulate information about the prospective franchisee before agreeing to sell them a franchise.
Why is a Franchise Application Form important? A Franchise Application Form helps you to collect information on your prospective franchisee. With this information, you can conduct verification and background checks to determine whether the applicant is someone you would want as a franchise owner.
What does the form include? The application form requires the applicant to answer questions and complete information relating to: personal details; financial and business related questions; banking details; references. It provides for acknowledgements and consents for you to conduct credit checks and background verifications.
What does the Franchise Application Form look like? There are two applications provided: a three-paged form for completion by applicants who are individuals (natural persons) and a five-paged form for completion by applicants who are legal entities, such as companies.
What do you need to do to use the Franchise Application Form?
- Read the template application form to confirm that it meets your requirements. It is editable, so you can make changes to the documents as required.
- Complete your details as the Franchisor, where specified.
- Ask your franchise applicants to complete the application form before you consider selling a franchise to them.
- You should also seriously consider getting an NDA signed.
- The application for a franchise is only the first step in the franchising process. Make sure that you also have your Franchise Agreement and Disclosure Document available.
As the franchise may be subject to the Consumer Protection Act and other statutory requirements, an expert’s advice should be sought.
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