Franchise Funding.com » Business Marketing http://franchisefunding.com Learn how to finance your franchise Wed, 02 Mar 2011 08:37:56 +0000 en hourly 1 http://wordpress.org/?v= Understanding Your Franchising Agreement http://franchisefunding.com/understanding-your-franchising-agreement/ http://franchisefunding.com/understanding-your-franchising-agreement/#comments Wed, 01 Jul 2009 21:17:26 +0000 ffadmin http://franchisefunding.com/?p=31 Okay, so you’ve finally decided to purchase a franchise business. You’re done doing your research and you’ve found the right franchise company to partner with. After submitting your application, you are now ready to meet with your franchiser to sign up your contract. So what’s next?

Keep in mind that signing up your franchise contract will bind you to the Terms and Conditions of your franchiser. Thus, it is crucial that you clearly understand and that you are in complete agreement with the stipulations in the contract. What are the things you need to know before signing up your franchising agreement?

The Complexities of a Franchising Agreement That You Should Know
A typical franchise agreement is comprised of 20 to 30-page documents that are divided into sections and sub-sections. Every paragraph in the agreement discusses all aspects involved in the franchise business. A new business owner can easily become overwhelmed by the length of the documents but it should never discourage you from examining each and every statement printed on the pages of your franchising agreement.

If you’re not familiar with the terminologies or if you find it difficult to understand the process of business marketing, it’s best to seek professional assistance from a business attorney. Let your business attorney double check your franchising agreement to ensure that the conditions are all legal and fair. You may also request your attorney to explain to you the parts of the agreement that are confusing or difficult to understand.

It is possible that some of the terms in your agreement may be favorable to your franchiser but not for you. In this case, if you find something unreasonable or disagreeable to your liking, do not hesitate to discuss the issue with your prospective franchiser right away. If your franchiser agrees to your proposed conditions, you should be handed a new franchising agreement, with the changes that both you and your franchiser has agreed upon.

Never sign up a franchising agreement that contains broken lines, missing words, or blank spaces where details can easily be added after you’ve already signed up the document. Remember, any violation of the rules included in your franchise agreement is considered as a violation and therefore, a ground for a law suit.

There is not one standard business franchising agreement that applies to all franchise companies. Each franchiser has specific Terms and Conditions even if both franchisers are in the same type of business. Understanding your franchise contract in the very beginning can save you from trouble and complications in the future.



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