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What is a franchise agreement?

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Old 12-13-2006, 08:52 AM
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Default What is a franchise agreement?

It is the contract that binds the franchiser and the franchisee to the franchise relationship and indicates the terms and conditions of the franchise.

The greatest mistake many franchisees make is not reading the whole franchise agreement since it is long and usually has a minimum of 30 pages. While it is good to ask a lawyer to review the contract, the franchisee must first read and try to understand its contents, and to make sure he or she is willing to abide by its terms.
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Old 12-14-2006, 03:33 AM
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Default Re: What is a franchise agreement?

I think not reading agreements before signing has always been a failure to most people out there not only with regard to franchising. Contracts are created to serve as proof that all that is written there are things that both parties agreed upon. If you don’t read it, then it might as well not to have any contracts at all!
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Old 12-14-2006, 09:35 AM
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Default Re: What is a franchise agreement?

Yeah you're right cessy. Some are bothered with the small long details and fine print that they don't take the time to read it at all. Just like the same as with insurance policies. That is why it's important to read everything first before signing, that way you know that you're getting what you deserve.
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Old 12-15-2006, 02:07 AM
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Default Re: What is a franchise agreement?

Take time to read the documents before signing any contract to avoid problems in the future. It may be troublesome but reading and understanding it will save you from bigger troubles in the future.
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Old 12-18-2006, 11:13 AM
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Default Re: What is a franchise agreement?

Don't just read but understand the contents of any business or legal document before signing it. It's also best to have a contract reviewed first by your lawyer or legal adviser before signing. Some legal issues could be unfamiliar to you and a lawyer can best explain them for you. If you have points in the contract which you don't agree on, have it revised if your franchiser would allow it.
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Old 11-28-2007, 07:18 AM
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Default Re: What is a franchise agreement?

i am totally agree with "cessy". thanks for tip cessy.
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