Find out about the franchise agreement, before investing on a franchise business
If the fear of failure keeps you away from business then the fear can be reduced to a great extent through franchising. A franchise is basically a business which is authorised to distribute or sell a franchisor’s products and services. With this kind of business, you can directly be benefited from the work and experience of the franchisor.
If you are planning to start your business from scratch then you may face many difficulties. But with franchising, these obstacles are completely eliminated.
Here is some information about the franchise agreement:
When you decide to opt for franchising, you need to enter into a legal agreement with the franchisor. This agreement clearly states what rights and obligation you and the franchisor have.
The key issues include
• How long the franchise will last
• What happens at the end of the term?
• What happens if either of you wants to end the agreement or sell the business?
• What kind of support will the franchisor provide
• The fees you have to pay in the beginning and on the yearly basis.
• What rights you have on trade marks of the franchisor. • The number of restrictions on you while you are performing the business activities.
While signing the deal, you need to make sure that the agreement is not one-sided. Franchising involves complex legal issues, so ensure you know exactly what you are getting into before you sign up to anything.