Not all newsagency franchise / marketing groups are the same. The devil, as they say, can be in the detail – detail often embedded in a long contract you may not read. Here are 20 questions we think you need to ask at the very least BEFORE you sign a contract or sign to renew a contract.
- Will I be forced to take any product? If so, what product and when? What does your contract say?
- Is product sent that I do not directly order? If so, please list product sent in the last year.
- Can I sell my business when I choose to anyone I want without giving you first right of refusal or having to tell you in advance? What does your contract say?
- Can I buy products from any supplier or MUST I purchase through suppliers you approve? What specifically does your contract say?
- In terms of your preferred suppliers, do they mark-up product before they give members of your group a discount or is the discount off the wholesale price other newsagents pay?
- Please list for me all newsagencies trading under your name that have closed or gone broke in the last two years.
- Do you offer an in-store business advisory service? If so, how often and how long are the visits and what is the experience of the person making the visit?
- Do you support the newsagency owned GNS for stationery supply? If not, which organisation do you support for stationery and why?
- Do you offer a lease negotiation service? If so, is there any extra cost for this? Also, is the lease in my business name without reference to your business at all?
- Am I forced to use a particular newsagency software program? If so, what guarantee is there that I get this at preferential pricing, better than if I bought it by myself?
- Who owns your group?
- Can I contact the owners of your group at any time with any issue at all?
- What guarantee do you have that you will not allow another newsagency to join near my business? Is this in writing?
- Can I join another group when the contract ends or do I need to wait for some time?
- Must I use a central billing service to get supplier discounts or rebates or can I control my own cash-flow?
- What happens if my business closes – am I liable for franchise fees?
- Do I have to supply you with my sales figures and if so what do you do with this?
- Do I have to attend your conference and if so what is the cost?
- What is the total cost of joining the group?
- What is the full monthly cost of being part of the group?
