You’ve just finished attending Discovery Day and you like what you’ve witnessed in this final installment of the franchise courting process. You’ve decided this is the franchise for you. You sit down with the franchisor at the end of the day and he brings the franchise agreement to the table. There are a few things you should know.
The franchise agreement is essentially a legal document between the franchisor and you (the franchisee). It is a legal binding agreement. It explains in detail what the franchisor expects from you, as a franchisee, in the way you operate every facet of the business. There is no standard form of franchise agreement because the terms, conditions, and the methods of operations of various franchises vary widely depending on the type of business.
Every franchisee is required to 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 may want to have a franchise attorney review it on your behalf prior to signing.
Now, more about what you will find in the pages of the franchise agreement. Here are 10 fundamental provisions outlined in some form or fashion in every franchise agreement…