Although a franchise agreement is unique for each franchise, it must still contain all the necessary elements. While there is no model for franchise agreements that allow you to log in to your company name and with which you execute, the above elements will help you reach a comprehensive agreement that will help you start your franchise business. Working with a franchise consultant or franchise lawyer can also ensure that your franchise agreement is legal and will protect your brand so that you can do so. Each franchisee must sign the franchise agreement and the franchisor will also sign the document. A word of caution, a franchise agreement is a binding legal document and you can have a franchise lawyer checked on your behalf before signing. A franchise agreement is the sales contract. It contains the franchise package, the price and the services provided. The “franchise package” lists all the devices and inventories that the franchisee receives with the property. It seems obvious, but always look for the price and the method of payment. Often, the franchisor will first collect a deposit and recover the rest after the delivery of the equipment. Finally, the sales contract lists all the franchisor`s responsibilities to the franchisee. “Welcome services” refer to all that is required before the franchise is opened to businesses and “continuing services” are those that the franchisor regularly provides throughout the term of the contract.
The franchise agreement should also contain a section explaining what an offence is and the consequences of the offence. It should also indicate the measures taken to remedy a breach of contract or what happens if the contract is terminated. In addition, this section of the franchise agreement defines the type of location that franchisees can choose for the franchise. You can set the conditions of the type of market that surrounds the physical location, the amount of foot or car traffic it sees and other provisions. This section could also specify a timetable for the duration of the establishment of a site for brick and mortar by the franchisee.