About the costs to the franchise purchaser:

• Details of payments to be made by the franchisee to the franchisor (including method of calculation if applicable).
• The amount to be refunded by the franchisor if the franchisee terminates the Franchise Agreement within the seven-day "cooling off" period. IFA requires its registered franchisers to be specific on this aspect. The "cooling off" period begins from the date the agreement is signed.
• Itemized costs of all components making up the franchise purchase and a total cost to reflect the full outlay. The components which are to be tabulated and priced include:
  - The franchise fee.
  - Stock, fixtures and fittings.
  - Working capital.
  - Items which could be leased.
  
  The registered franchisor is also obliged to provide details of any financial conditions such as a requirement that the franchisee puts a specific amount of non-borrowed capital towards the franchise purchase price.

About the operation of the franchise:

Particulars of any restrictions imposed on the franchisee in relation to territory or involvement in competing franchises.

A summary of the terms and conditions for the purchase of services, goods, fixtures and property from the registered franchisor, including:
  

• What happens if the source of goods and /or products supplied by the registered franchisor fails?
  
• Relevant information on rebates from suppliers and the conditions attached to the rebates.
  
• An explanation of the registered franchisor's involvement in and /or approval of site selection and a statement as to whom is responsible for the lease of the premises.
• A summary of the terms and conditions relating to termination, renewal, and assignment of the franchise, including calculation of goodwill.
• A summary of the main obligations of the registered franchisor (including initial and ongoing training to be provided).

About profit projection:

Where written projections or potential sales, income, gross /net profits or other financial projections are provided in relation to a franchise or franchises of a similar nature, the registered franchisor is required to explain the basis of the assumptions on which the projections were calculated. Each page of the projections should be qualified in the manor of the following examples:

(i)  "These figures represent actual performance by the franchisor (or a franchise). There is no guarantee that you will achieve these figures and nor is it intended that you should rely on them as a guarantee";
    
 or

(ii)  "These figures indicate the gross profit margins and revenue expenses at stated turnover levels, which have been experienced by the franchisor in its own operations. There is no guarantee that you will achieve the same results, nor is it intended that you should rely on them as a guarantee".

In making projections, registered franchisors are also required to disclose whether depreciation, salary /wages for the franchisee and the cost of servicing loans has been included.

About the franchise territory:

• Has the territory or site been subjected to any trading activity?
• Particularly by a previous franchise? 
• If so, what is the history and detail, including the circumstances of any cessation of the franchise? 
• It may pay to ask, "Why is the franchise now available?"

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