Why plain language matters in franchise agreements, and what the CPA says

Imagine a prospective franchisee sits down to read your franchise agreement. They’re excited. They’ve been researching your brand for months, scraping together funds, dreaming about a business of their own. But when they open the agreement, their enthusiasm falters. They can’t tell what they’re committing to. Renewal terms are murky. Penalties are buried in dense legal jargon. The dream suddenly looks risky. 

It doesn’t have to be that way, and under South Africa’s Consumer Protection Act (CPA), it shouldn’t be. 

Let’s explore what the law says, how it applies to franchisors, and why writing in plain language isn’t just about compliance; it’s also good business. 

What the CPA says about plain language 

Section 22 of the Consumer Protection Act requires that all written documents presented to consumers, including franchise agreements, must be in plain and understandable language. 

In plain terms: 

The average person for whom the agreement is intended, with average literacy skills and experience, should be able to understand the document without undue effort. 

Importantly, the Act treats franchisees as consumers, and franchise agreements are consumer agreements. That means your franchise agreements must meet the plain language requirement. 

Why this matters in franchise agreements 

Franchise agreements are detailed legal documents. They need to cover fees, IP rights, operational responsibilities, dispute resolution, and more. But complexity is no excuse for obscurity. 

Failing to write in plain language exposes franchisors to risk: 

• Regulatory scrutiny: A franchisee could challenge a clause on the basis that it’s unfair or incomprehensible. 

• Onboarding delays: Prospective franchisees often seek legal advice to make sense of an agreement, slowing the process and increasing costs. 

• Breakdowns in trust: If a franchisee feels misled or confused, the relationship can sour quickly and publicly. 

But there’s an upside, too. Agreements written in plain language: 

• Streamline negotiations by reducing back-and-forth and legal fees. 

• Improve franchisee satisfaction by helping them start with confidence. 

• Strengthen compliance by ticking the CPA box with confidence. 

Common problem areas in franchise agreements 

Certain clauses almost always raise red flags for franchisees. Here’s how plain language can help: 

• Renewal terms
  Instead of:
  “Subject to the franchisee’s compliance with all terms herein and absent any material breach, the franchisor may, at its sole discretion, offer a renewal for a further term…”
  Try:
  “If you meet all the terms of the agreement, we may offer to renew it for another term. Renewal is not automatic — we will decide based on performance.” The original clause is ambiguous because it refers to ‘all the terms’ and then to ‘material breach’. We kept it conservative and assumed it should be ‘all the terms’ 

• Fee structures
  Make it easy to understand what’s due, when, and why. Consider using a table to summarise upfront fees, monthly royalties, and advertising contributions. 

• Termination rights
  Be clear about what constitutes a breach, what happens next, and whether there’s a chance to fix the problem. 

• IP clauses
  Avoid overloading with legalese about “moral rights” and “indemnities” — use plain terms to explain who owns what and how trademarks can be used. 

Plain language ≠ dumbed down 

Let’s bust a myth: writing in plain language doesn’t mean “See Spot run”. 

It means writing with clarity and purpose, using words and structure that help people understand, rather than confuse or intimidate them. 

The approach is backed by the ISO standard for plain language (ISO 24495). It’s a recognised discipline used in law, finance, healthcare, and government communications around the world. If you’re interested in examples of our plain language work, check out our portfolio. Yes, it’s a shameless punt, but it’s also a great portfolio of work.  

You can be clear and legally precise. In fact, clarity makes legal protections stronger because your franchisees actually understand their rights and obligations. 

How to start making agreements clearer 

You don’t need to rewrite your entire agreement overnight. Start with these steps: 

1. Structure the document logically
   Use clear headings and a sensible flow so franchisees can navigate with ease. 

1. Define key terms where you use them
   Use jargon sparingly. When you must use a term of art or a technical term, explain it where you use it. 

1. Use active voice and short sentences
   “You must pay the monthly fee by the 5th of each month” is clearer than “Monthly fees shall be remitted…” 

1. Design for readability
   Use white space, readable fonts, and bullet points to break up dense sections. Curious? Here’s something we wrote recently about left-aligning for readability.  

1. Test your agreement
   If you’ve never asked a real or potential franchisee to read your agreement and explain it back to you, start there. You will quickly see where they get stuck or start to lose interest. Or hope. Yikes. 

You don’t have to do it alone 

Writing in plain language isn’t about stripping out the law, it’s about translating legal concepts into terms your audience understands. That’s what we do. 

We work with franchisors, lawyers, and compliance teams to rewrite agreements in clear, accurate, legally sound language and to present them in a way that builds trust and reduces disputes. 

Whether you need a full rewrite or just want to improve a few tricky clauses, we’re here to help. 

Clarity builds trust. And business 

Franchising is built on partnerships. Like all partnerships, trust matters. And trust begins with understanding. 

Clear, CPA-compliant agreements don’t just protect you, they set the tone for a healthier, more successful franchise network. 

Want to see how one of your clauses could be made clearer? Send us a snippet and we’ll show you what’s possible.