It’s a story that’s all too common: a newsagent, just a couple of months into an agreement with a marketing group, finds themselves unhappy and wanting to leave. They recall being told they could exit the arrangement if it wasn’t a good fit. However, the document they signed tells a different story: they are locked in for several years. When they raised their concerns, the friendly promises were replaced with threats of legal action.
This situation is a harsh lesson in the importance of due diligence. For many in our channel, especially new newsagents buying their first business, the allure of a compelling sales pitch can be blinding. But a friendly chat is not a contract.
Before you sign any agreement with a marketing group, here are the essential points to consider.
Read the Contract. Then Read It Again.
This cannot be overstated. The single most important document in your business relationship is the written agreement. What a salesperson says, promises, or implies holds no weight once your signature is on a piece of paper that says otherwise.
- Verbal Promises vs. Written Terms: Sign an agreement based only on what is written within its pages. If a salesperson tells you, “Don’t worry, you can leave anytime,” ask them to show you exactly where that clause is in the contract. If it’s not there, it’s not real.
- Understand Every Clause: Be sure you understand what you are agreeing to. If there is any jargon or language you find confusing, seek clarification or independent advice before proceeding. You must be prepared to stand by every term in the agreement.
Beware the Friendly Sales Pitch
They are there to sell you something. Sometimes, faux friendship can be a perfect way to get your signature. A good salesperson is personable and builds rapport. But you are not signing a contract to be their friend; you are entering a legally binding business partnership. The hope is that their group will help your business thrive, but hope is not a strategy. Scrutinise the offer, not the person offering it. If you feel uncomfortable or pressured at any point, do not sign. At this stage, you are in complete control.
Know Your “Locked-In” Period
Every agreement will have a minimum commitment period. Find this section and read it carefully. Are you comfortable committing your business to this group for that length of time? Two, three, or five years (with an auto-rollover) is a long time to be tied to a strategy that may not be working for you. If you are not sure you can make that commitment, don’t sign.
The Pressure of a Pre-Branded Business
A common pressure tactic arises when purchasing a business that is already part of a marketing group. You might be told that you must sign on to keep the branding and that de-branding will incur a significant cost for you.
This is often misleading. The responsibility and cost of de-branding a business should lie with the current owner as a condition of the sale. Do not be duped into joining a group you’re unsure about simply to avoid a problem that isn’t yours to solve. Do what is right for your future business, not what is convenient for the seller.
What Does the Brand Truly Stand For?
Take a moment to step back and assess the marketing groups themselves. What is their value proposition, not from their slick brochures, but from the perspective of the average shopper?
The reality in the newsagency channel is that brand consistency is a major issue. You can often visit ten different shops under the same marketing banner and have ten vastly different customer experiences.
Ultimately, the brand that matters most is your own. Your business name, your reputation in the local community, and the service you provide are what will truly define your success.
Your Signature is Your Bond
An ethical organisation, upon realising a client is deeply unhappy, would work to find an amicable solution. A contract should be a framework for a mutually beneficial partnership, not a cage.
Before you sign any agreement, pause and reflect. Read the document from start to finish. Understand your obligations and the minimum commitment. Only when you are completely satisfied with every term should you consider signing. Your signature is your bond—make sure you’re giving it to a partner you can trust.
