Attorney J. Michael Dady wrote on Bison.com:
One of the most important things that you can do to protect yourself, when you are planning to invest the time, money and energy that come hand and hand with owning and operating a franchise, is to carefully review your franchise agreement before signing. There are, of course, many provisions that will impact your ability to successfully operate your franchise, and many others that will impact the kind of protection you will have in the event of a dispute with your franchisor. But, in my 29 years of experience as a lawyer for franchisees, I have found that there are nine particularly important provisions to look for.
- A Good Definition of What You Will be Selling
- Protection Against Same-Brand Competition
- “Do the Job, Keep the Line” Duration
- An “Early Out” Provision
- Franchisor and Franchisee Obligations
- Fair Compensation and Ability to Sell Related Products
- Fair Dispute Resolution Procedures
- Right to Sell or Transfer/Right to Do Something Else
- Good Faith and Fair Dealing
Read more in the Bison.com Franchise Forum.
None of Your Business on May 20th, 2005 at 8:49 pm
Nine of the Most Important Provisions to Look for in a Franchise Agreement
Yet another great post from Dane. This time, on Nine of the Most Important Provisions to Look for in a Franchise Agreement. While I don’t particularly like franchises myself, they do tend to be an easy way for people to be their own boss, which I whol…