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Signing That Franchise Agreement
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Signing That Franchise Agreement

Signing That Franchise Agreement

Franchise Article Author: The Franchise Guide

You should always know what you are getting into and this is a big must especially if you are thinking of signing that franchise agreement.  A mistake here or lack of foresight on your part would definitely cost you more than your last divorce.  So before you tie that knot, read between the fine lines and make sure to understand and adhere to everything written on the contract.

Remember that the contract is the right of the franchisor and thus is heavily tilted to his favor.  This is reason enough for you to keep on your toes more and to keep your eyes peeled for any problems that might arise in the future.  For this matter, here are what you can expect from a franchise agreement.

Blind and complete obedience to everything that is written down in the operations manual is definitely one of those matters in the top of the list.  Franchisors would like you to stick as much as possible and when needed, deviate not one iota from the written words of how you should run your business.  You must promise to show as much reverence to this book as the Israelites did to the Ten Commandments written by the hand of God on the stone tablets.  So if the operations manual say that you must toss the beef exactly five feet before serving, mark the spot and begin practicing.  If you think this is too much for you, then you must tell them to save the both of you much hassle and frustration.

The contract will also cover how it will be implemented.  This will generally involve clauses such as “if you do this, this is what we will do in return” and “if you fail to do this, this will be your penalty”.  Because of the highly complex and use of advanced legal terminology on this part, it is advised that you have a lawyer (to be more specific, a franchise lawyer)to translate the alien language for you.

Another important part of the franchise contract will be on how much you are expected to pay the franchisor and what these payments are for.  Here, it will be explained to you how much of your monthly payments to the franchisor will go to advertising the products and services that you provide.  It will also cover what types of advertising and marketing strategies and methods you can expect from your franchisor.  The monthly fees you will pay should also cover renovation and maintenance expenses so keep your eyes peeled for these figures on the contract.

With these and more, you will be better prepared in joining hands in this business marriage with your franchisor.

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