Franchise agreement 7 things you need to know before you sign

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Before you enter into a franchise agreement, you have to be well aware of the contents of the
contract. Since it s a legal contract, it is binding and it requires that both parties fulfill certain
obligations especially you, the franchisee

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Franchise agreement 7 things you need to know before you sign

  1. 1. Franchise Agreement: 7 Things You Need To Know Before You SignBefore you enter into a franchise agreement, you have to be well aware of the contents of thecontract. Since it s a legal contract, it is binding and it requires that both parties fulfill certainobligations especially you, the franchisee.Before concurring into any franchise agreement you should be comfortable with all the stipulationsdemanded. To weigh your options and negotiations you must have your franchise attorney withyou. Before you arrive to the point where you are negotiating your franchise agreement, there aresteps that need to be observed.Make sure that the franchishor will permit negotiations with the terms of agreement. However,some franchisors openly mention that they are do not welcome negotiations while others are okaywith it. You must also let your franchise attorney review the agreement so that he may identify anypossible issues even though you cannot negotiate the agreement.You have to recognize that there are certain terms in a franchise agreement that are non-negotiable. These terms include the royalty fees, territory size, termination provisions and length ofthe agreements. These provisions are untouchable. It is very rare if you find a franchisor whoagrees to change these provisions.Make it clear with the franchisor that you will not be held liable for any loss or damages that arenot caused by you or your employees directly. You can request for written language on this tomake things clearer and legal as well with both parties signing the agreement with a franchiseattorney.Do remember to review the provision on spending for advertisements. During the first few years ofoperations, franchisors offer discounts.Be sure to check with your lawyer if you have some inquiries in some sections of the negotiation.Keep in mind that the agreement is complicated and has a tendency to favor the franchisor. Nowbefore you sign on the dotted line, make sure you fully understand your obligations andcomfortable with the final agreement.==== ====Franchise Consultants Videoshttp://bit.ly/franchiseconsultants==== ====

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