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. While not all franchisors will repeat the pre-opening and post-opening services they offer to the franchise in franchise publication documents, strong design principles will require that these issues be repeated in the franchise agreement. However, the inclusion in the franchise agreement eliminates the spectre of litigation to introduce rights into the contract that are not otherwise indicated. 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. In addition, there must be a factual description of the deductible as well as a clear indication of all the funds payable, such as the initial deductible fee.
B, down payments, down payments, prepaid rent on site and purchases of equipment and inventories. The terms and times for repayment and their amount must be clear, as must the amount of recurring costs such as royalties, rents, advertising and rental costs. All restrictions imposed – such as the amount of goods or services for sale, the types of customers with whom the franchisee can trade – the geographic area and whether the franchisee is entitled to the protection of its territory by the franchisor must be discussed. The duration of the deductible must also be explained in addition to the reasons why the franchise is terminated or the franchisee`s licence cannot be renewed if it expires. Include the number of deductibles terminated or voluntarily terminated by the franchisor. The franchisor must disclose the number of franchises that made the activity at the end of the previous year as well as the number of outlets of the company. The franchisee must also be delivered with the names, addresses and telephone numbers of franchisees in the ten outlets closest to the potential franchisee`s location, so that the potential franchisee can contact them for a realistic perspective on the day-to-day operation of a franchise.