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You need to know about these common franchise agreement terms

On Behalf of | Feb 25, 2022 | Business Law |

Starting a business can be an expensive and difficult endeavor. That’s why many people turn to franchising. This avenue gives you access to a well-established brand and a built-up client base that can lead to quick profitability. But franchising isn’t as easy as it seems, and far too many people end up in over their heads with a franchise. That’s why if you’re considering buying into a franchise, you may need a legal advocate on your side.

Beware of these terms in your franchise agreement

When you endeavor to buy into a franchise, you need to carefully consider the terms of your franchise agreement so that you know what you’re getting into. These terms can include each of the following that should be negotiated and policed as fully as possible:

  • The duration of the agreement
  • The opening schedule
  • The franchising fees, which may include upfront costs as well as a certain portion of sales
  • Training support
  • Corporate’s advertising obligation
  • The extent of the territory that you can claim with your franchise without interference from other franchisees from the same company
  • How site selection will be approved
  • How intellectual property is to be used
  • The conditions upon which the agreement can be terminated
  • Any non-compete clauses that limit your ability to operate other businesses
  • Records maintenance
  • Renovation requirements
  • Insurance requirements
  • Your rights to transfer or sell the franchise

Confidently navigate issues related to your franchise agreement

We know that’s a lot to consider, and the issues aren’t put to rest once you feel comfortable signing off on a franchising agreement. Instead, you’ll need to revisit the terms of your agreement to not only ensure that you’re in compliance, but also to determine if the franchisor is living up to its obligations.

If it’s not, then you may want to consider legal action to protect your interests. An attorney who is well-versed in this area of the law, like those at our firm, may be able to assist you in that regard. So, if you’re looking for legal assistance, then we encourage you to browse our website to see what we have to offer.