THINK long and hard about taking up a franchise, Stephen Whitmore, head of the corporate department at Salisbury law firm Wilsons, is advising the business community.

He said the New Year was the time many people thought about starting a business and franchising was one of the options.

"Franchises can be highly successful and lucrative ventures, but they are not without risk," he said.

"Very often, people interested in taking up a franchise are presented with a printed agreement setting out the terms in great detai, and are told that the terms are non-negotiable.

"In our experience, the terms can often be negotiated by using a side letter which sets out special terms which only apply to the individual negotiating them.

"In this way, franchise companies can keep to their claim that the main contract is not negotiable."

Mr Whitmore said the key things to look for were length of agreement and exclusivity.

"Exclusivity is obvious - you want to know that there is not going to be a clone of your business setting up too near to yours," he said.

"Don't accept vague promises on this - get a map and draw a line around your exclusive patch, or do it by postcodes.

"Also think about taking a first option on any available adjoining patches.

"On length of agreement, never assume that if the franchise doesn't work out you can simply walk away from it.

"Often the agreement will last for quite a long period, say ten years, and you will be liable to pay a minimum sum for it every year, whether you trade or not.

"Too often, new franchise holders fall into the trap of thinking they can pack up the franchise and forget about it.

"While it is true that reputable franchise companies will try and find someone to take the business on, it is also true that if the original franchise holder has not made a go of it, others may be reluctant to commit.

"Even if the franchise is taken out in the name of a company, the franchise company usually insists on a personal guarantee from the owner of the company.

"And the effect can be that the franchise holder has to pay out the minimum sum for many years, often amounting to many tens of thousands of pounds."