How Do Franchise Agreements Work?
When franchisees join a franchise network, they are effectively buying the rights to operate the business under the franchisor’s established brand and system. Therefore, franchise agreements explain what the franchisor expects of the franchisee and impose obligations on them to ensure they run it in a specific way.
No franchise agreement is the same. Franchise agreements, however, are legally binding contracts, and it is advisable you seek legal advice before entering into it so that you fully understand and appreciate your obligations.
How Can LegalVision Help?
For franchisors, it is important that you maintain control of the growth of your business and that you are compensated fairly for the effort you put into developing the system. Drafting a robust franchise agreement will provide you with this control as your business grows. LegalVision’s franchise lawyers can help with all aspects of the franchise agreement – from drafting and modifying it on your behalf.
For franchisees, reviewing a franchise agreement is one of the most important things you can do. The franchise agreement will determine what you can and cannot do. Given that the franchise agreement will bind you for a specified period, you need to ensure that it is not lopsided in favour of the franchisor and that it meets your objectives. Our franchise lawyers can provide you with the advice you need when you are considering a franchise and can help you to review and negotiate the franchise agreement to suit your needs.