Pre-sign due diligence
Franchise versus local operator
How to separate the legal entity you actually contract with from the national brand or franchise system it belongs to.
What to think about with franchise
A franchise brand and the local company that will actually build your home are not the same legal entity. Before you sign, make sure you know which legal company holds your contract, which director is responsible, and what oversight the brand does or does not provide.
Checks to run
- Identify the local legal entity behind the franchise name.
- Ask what support or oversight the brand provides.
- Check the local entity's company history on the Companies Register.
Questions to ask before signing
- What legal entity will hold the building contract?
- Who are the directors and shareholders of that entity?
- What does the franchisor do if the local operator fails to perform?