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Franchising Agreements (Franchisor)

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What else you might like to know about Franchising Agreements (Franchisor)

If you are selling a franchise to another business, there are responsibilities and restrictions to formalise. For that reason it is important to seek the help of a legal service provider. Here is some basic guidance to inform your choice of legal expert.

What is a franchise agreement?

A franchise agreement helps to determine the grounds, terms and conditions by which a franchise is granted to a third party. Franchise agreements provide the legal set out and the terms and conditions for those involved in the sale and purchase of a licensed franchise.

What needs to be included in a franchise agreement?

A franchise agreement typically outlines the rights granted to the franchisor and franchisee. It will also set out each party’s obligations to one another. The terms of payment for the franchise should be included, as should the agreed length of time that the franchise license will last for. The agreement may also define how any trademarks and intellectual property associated with the license should be used.

How can a franchise agreement protect me?

A franchise agreement is a legally binding document that offers protection for both the franchisor and the franchisee. It clearly outlines the parameters of a license and gives either party clear grounds to pursue legal action should the terms be broken.

How can a legal service provider help me?

A legal expert can assist with the creation of a franchise agreement, anticipating any future points of dispute and creating a contract that sets out a clear legal framework accordingly.

What pricing structures can I expect from a legal expert?

Legal service providers may charge clients using a number of different pricing structures. Creating a contract may be offered as a fixed fee or hourly rate service.

What happens if a franchise agreement is broken?

If any of the terms of a franchise agreement are broken then you are entitled to take legal action against the franchisee. In some cases you may have chosen to build a financial forfeit clause into the agreement, and can pursue the corresponding compensation.

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