In a franchise agreement example, a business owner establishes a business relationship by signing the contract. This is a document that outlines the rights and responsibilities of both parties.
The different sections involved in this contract are the franchise’s responsibilities, territorial rights, renewal rights, franchise royalties, website accounting, and many more such matters. There are various terms used like “franchisor”, “business”, “business entity”franchisee”.
Negotiating a Franchise Agreement from franchise agreement example, source: thebalancesmb.com
The franchise agreement must be made in writing. To do this, the business owners sign it on their own and include any necessary signatures of their authorized representatives. It should be signed in front of a notary public.
Another part of the contract that needs to be considered carefully is the terms of termination. Usually, the franchise agreement states that if the owner decides to terminate his/her agreement, there will be a termination fee payable by the franchisee. This may be negotiable. It is also advisable to add some clauses for the benefit of the franchisee to avoid the situation of a termination fee being paid to the franchisor.
Beautiful Sample Franchise Agreement from franchise agreement example, source: theearthe.com
A franchise agreement should cover all the basic details of the franchise agreement, including the name of the company, the address, the telephone number and fax numbers of the franchisor and the franchisee. This is to ensure that there be transparency and accountability.
The term “competition” should be defined and it is important to state clearly that no one can stop the franchisor from expanding its presence or its market in the market. The franchisee should also be provided with a written assurance from the franchisor that there is no binding agreement between them. It is important that both parties are aware of this.
49 Lovely Franchise Agreement Template from franchise agreement example, source: jlwhitebooks.com
An investor should also be given a legal description of the kind of business the business owner is going to be engaged into. This way, the business owner can make sure that the contract he/she signs include all the legal rights and responsibilities related to the franchise.
Business owners have to carefully look over the terms of the franchise agreement before signing. It is very important because there could be clauses that might harm the franchisee in some way. There are clauses that are not very clear. This means that the business owner has to be careful when he/she signs the contract.
Business Plan Franchise Template Juice Business Plan Franchise Plans from franchise agreement example, source: uatour.org
The legal agreements are usually drafted with the help of attorneys. There are so many business owners who are still unaware of the importance of these things.
It is vital to be aware that a franchise agreement is the business’ legal agreement. It is the legal agreement between the business and the franchise. The business owner can negotiate the contract with the franchise, but it is the franchisor who has the final say in all business dealings. In other words, the franchisee is legally bound to the franchisor.
Business Partner Agreement 51 49 Partnership Agreement Template Juve from franchise agreement example, source: kampanjakoodi.info
The business owner is legally bound to the franchisor even if the franchisee does not pay the fees and the franchisee does not carry out the contract properly. This means that the franchisee cannot leave the business or leave the country without consulting the franchisor first.
It is very important to note that in the example above, the franchise agreement is something that will be in force even if the business owner quits the business before its expiry date. In such a scenario, it is possible for the franchisor to sue the business owner for breach of contract, unless and until such time as he/she pays all the fees of the franchise agreement.
When considering the franchise agreement, the best place to start your search for an example is on the internet. You will find many examples online. It is important to make sure that you are familiar with the rules and the terms of the franchise agreement. It is better if you use the same type of language that the franchisor uses.