Understanding Your Franchise Contract
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Naz Daud
Mar 24, 2013, 5:30:05 PM3/24/13
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Please consider this free-reprint article written by:
Naz Daud
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Article Title: Understanding Your Franchise Contract
Author: Naz Daud
Word Count: 555
Article URL: http://www.isnare.com/?aid=664835&ca=Business
Format: 64cpl
Contact The Author: http://www.isnare.com/eta.php?aid=664835
Easy Publish Tool: http://www.isnare.com/html.php?aid=664835
*********************** ARTICLE START ***********************
Franchising is a business concept that continues to generate interest from budding entrepreneurs. For someone who wants to start a new business with a franchise, there are many factors worthy of consideration before starting out. For example, it is imperative that a franchisee fully comprehends their business contract. With this in mind, how do you establish an understanding of this vital documentation?
The first port of call for making sense of your contract is to employ the help of a good lawyer. In doing this you are ensuring that every component of the legally-binding document is well scrutinised. Contacting a franchise lawyer can be done through the British Franchise Association�s website. In most cases you will receive a draft copy of your contract that you and your lawyer can read through, allowing you to highlight anything you wish to enquire about.
The contract breaks down into several components. First and foremost will be what your franchise is going to cost. This will include the starting fee as well as any continuous payments that will need to be made. The contract will also explain at what time you should be making payments and how you will make them.
Also outlined in the document will be the period of time in which your initial franchising licence will last and the terms of renewal. This means you must fully understand what possibilities can occur once your first franchise licence expires. Some franchisors will offer a fixed renewal date within their contract. You will need to make sure that you are aware of when this is as well as the clauses through which you can terminate your agreement.
Franchisors will want to issue you with a certain degree of development and training to ensure you are operating efficiently with your franchise. However, extra and additional training will come at an excess cost. This will be detailed in your contract so be sure you know how much additional training will cost.
Always remember that in drafting out a contract, franchisors will look to gain as much of an advantage as possible in your agreement. There are several factors that should be considered to be sure you are receiving a fair deal.
Firstly, pay close attention to what restrictions there are within your contract. For example, are there any components with the document that prevent you from expanding your franchise? Some companies can be very restrictive on expansion. Also, you should be examining the costs of your annual payments and comparing them with your projected profits.
Once again, observing the get-out clauses for your franchise is of the utmost importance. If you need to terminate your contract in the future, you need to know what penalties this will carry.
Finally, you need to know how much help the company will offer you after the initial set up of your franchise. Will they continue to support you throughout the course of your agreement? How much support will they provide in the event of any legal disputes?
Overall, studying your contract is absolutely essential before fully committing to your business agreement. It appears that the devil could very well be in the detail; therefore, it is crucial that you understand each and every aspect.
About The Author: N. R. Daud � CL Franchises http://www.citylocal.co.uk/businessfranchise/ http://www.citylocal.co.uk/businessfranchise/articles/ http://www.citylocal.co.uk/businessfranchise/pressreleases/
Please use the HTML version of this article at:
http://www.isnare.com/html.php?aid=664835
*********************** ARTICLE END ***********************
- To distribute your articles go to http://www.isnare.com/distribution.php
- For more free-reprint articles go to http://www.isnare.com
Message delivered directly to members of the group:
publish-the...@googlegroups.com
*****************************************************************
Please consider this free-reprint article written by:
Naz Daud
*****************************
IMPORTANT - Publication/Reprint Terms
- You have permission to publish this article electronically in free-only publications such as a website or an ezine as long as the bylines are included.
- You are not allowed to use this article for commercial purposes. The article should only be reprinted in a publicly accessible website and not in a members-only commercial site.
- You are not allowed to post/reprint this article in any sites/publications that contains or supports hate, violence, porn and warez or any indecent and illegal sites/publications.
- You are not allowed to use this article in UCE (Unsolicited Commercial Email) or SPAM. This article MUST be distributed in an opt-in email list only.
- If you distribute this article in an ezine or newsletter, we ask that you send a copy of the newsletter or ezine that contains the article to http://www.isnare.com/eta.php?aid=664835
- If you post this article in a website/forum/blog, ALL links MUST be set to hyperlinks and we ask that you send a copy of the URL where the article is posted to http://www.isnare.com/eta.php?aid=664835
- We request that you ask permission from the author if you want to publish this article in print.
The role of iSnare.com is only to distribute this article as part of its Article Distribution feature ( http://www.isnare.com/distribution.php ). iSnare.com does NOT own this article, please respect the author's copyright and this publication/reprint terms. If you do not agree to any of these terms, please do not reprint or publish this article.
*****************************
Article Title: Understanding Your Franchise Contract
Author: Naz Daud
Word Count: 555
Article URL: http://www.isnare.com/?aid=664835&ca=Business
Format: 64cpl
Contact The Author: http://www.isnare.com/eta.php?aid=664835
Easy Publish Tool: http://www.isnare.com/html.php?aid=664835
*********************** ARTICLE START ***********************
Franchising is a business concept that continues to generate interest from budding entrepreneurs. For someone who wants to start a new business with a franchise, there are many factors worthy of consideration before starting out. For example, it is imperative that a franchisee fully comprehends their business contract. With this in mind, how do you establish an understanding of this vital documentation?
The first port of call for making sense of your contract is to employ the help of a good lawyer. In doing this you are ensuring that every component of the legally-binding document is well scrutinised. Contacting a franchise lawyer can be done through the British Franchise Association�s website. In most cases you will receive a draft copy of your contract that you and your lawyer can read through, allowing you to highlight anything you wish to enquire about.
The contract breaks down into several components. First and foremost will be what your franchise is going to cost. This will include the starting fee as well as any continuous payments that will need to be made. The contract will also explain at what time you should be making payments and how you will make them.
Also outlined in the document will be the period of time in which your initial franchising licence will last and the terms of renewal. This means you must fully understand what possibilities can occur once your first franchise licence expires. Some franchisors will offer a fixed renewal date within their contract. You will need to make sure that you are aware of when this is as well as the clauses through which you can terminate your agreement.
Franchisors will want to issue you with a certain degree of development and training to ensure you are operating efficiently with your franchise. However, extra and additional training will come at an excess cost. This will be detailed in your contract so be sure you know how much additional training will cost.
Always remember that in drafting out a contract, franchisors will look to gain as much of an advantage as possible in your agreement. There are several factors that should be considered to be sure you are receiving a fair deal.
Firstly, pay close attention to what restrictions there are within your contract. For example, are there any components with the document that prevent you from expanding your franchise? Some companies can be very restrictive on expansion. Also, you should be examining the costs of your annual payments and comparing them with your projected profits.
Once again, observing the get-out clauses for your franchise is of the utmost importance. If you need to terminate your contract in the future, you need to know what penalties this will carry.
Finally, you need to know how much help the company will offer you after the initial set up of your franchise. Will they continue to support you throughout the course of your agreement? How much support will they provide in the event of any legal disputes?
Overall, studying your contract is absolutely essential before fully committing to your business agreement. It appears that the devil could very well be in the detail; therefore, it is crucial that you understand each and every aspect.
About The Author: N. R. Daud � CL Franchises http://www.citylocal.co.uk/businessfranchise/ http://www.citylocal.co.uk/businessfranchise/articles/ http://www.citylocal.co.uk/businessfranchise/pressreleases/
Please use the HTML version of this article at:
http://www.isnare.com/html.php?aid=664835
*********************** ARTICLE END ***********************
- To distribute your articles go to http://www.isnare.com/distribution.php
- For more free-reprint articles go to http://www.isnare.com
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