Franchises have different requirements depending on the country that you intend to open the business in. 

Franchise Agreements

Franchise agreements are legal documents and therefore adequate legal and financial advice should be taken before signing a Franchise Agreement.

The franchise agreement must cover

  • Description of exact training and support offered
  • Precise price, commissions and rental fees involved
  • Precise boundaries of the franchise territory
  • Obligations to the franchisor
  • Rights to renew or extend beyond the original terms
  • Your rights to sell/transfer ownership of franchise
  • Terms and conditions for  terminating contract
  • Heirs rights In the event of hour death

 

Franchise Assignment

This is where a business sells its franchise on to another person.  There will be no initial fee, as the person selling the franchise will be responsible for all the payments and training etc.

Most common regular payments are from a % of the turnover, or a mark-up on a range of products.  In addition, a fee is usually provided to pay a marketing levy which is usually based on the turnover percentage on the franchisees business