The franchise agreement is essentially a legal document between the franchisor and you (the franchisee). This is a legally binding agreement. It explains in detail what the franchisor expects of you as a franchisee, in the way you operate every facet of the business. There is no standard form of the franchise agreement, as the terms and methods of the business vary considerably from different franchises, depending on the type of business. The franchise agreement will go into detail to learn more about the franchise relationship. It will contain detailed information on proprietary statements and outline things like website maintenance and upgrade requirements. You have just finished participating in Discovery Day and you like what you experienced in this last part of the franchise trial. You have decided that this is the franchise for you. They sit down at the end of the day with the franchisor and put the franchise contract on the table. There are things you need to know. Now, more info on what you`ll find in the pages of the franchise agreement. Here are 10 basic provisions in one way or another outlined in any franchise agreement: Read and verify this document and have legal counsel reviewed with franchise experience.
You want to be informed before signing a franchise agreement. Like a marriage, you want this relationship to be long. 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.