Business

Before signing any franchise agreement, you hav to make sure about everything is covers. It is a binding contract that require both parties to satisfy all their obligations indicated in the franchise agreement.

Before you sign the franchise agreement, you have to be comfortable with all of its provisions. To weigh your options and negotiations you must have your franchise attorney with you. There are steps that needs to be abided before concluding any of your negotiations.

Be sure that the franchisor will allow negotiations with the terms of agreement. There are some franchisors who openly express they are not open to negotiations while there are some who are open to negotiations. Have your franchise attorney to review the agreement because you might miss something and he might identify any possible issues even though there is no negotiations for the agreement.

You must be aware that there are some non-negotiable terms in a franchise agreement. Royalty fees, territory size, termination provisions and length of the agreements are a few examples of non-negotiable terms. These are the untouchable provisions. Rarely, franchisors allow to change these provisions.

Ask your franchisor if you will not be held liable for any loss or damages that are not caused by any of your employees or you. You can request for written language on this to make things clearer and legal as well with both parties signing the agreement with a franchise attorney.

It is important to check the provisions on allocation of funds for advertising. During the first few years of operations, franchisors offer discounts.

Be sure to consult your lawyer if you have some questions on some sections that need to be changed or deleted. Remember, a franchise agreement is a complicated document and it was designed to favor the franchisor. Before leaving an imprint on the document, be fully aware of what are the terms and agreement.

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